City Council Reviews Budget Blueprint for New Fiscal Year

Effingham City Council members and other city officials met Thursday evening to review a budget blueprint for the fiscal year that starts May 1.

The measure calls for a budget totaling $94,120,102. The amount compares to $76,645,390 for the current fiscal year, but includes $9.5 million for the new police station. 

The general fund budget for the new year totals $29.2 million, compared to $18.4 million for the current year. Expenditures are also up in the water budget, the capital projects budget, and the fire pension and police pension funds. Reductions are projected in the tourism fund, the library budget, and the motor fuel tax budget, along with small decreases in the TIF and sewer budgets.

Breaking down the general fund, decreases are seen in economic development funds because of some job creation grants that have expired, and in the street fund.

City Administrator Jim Arndt shared that he projected a 6% increase in health insurance costs, but now thinks it might be closer to 10%. The budget also includes a 3% pay increase for union and non-union personnel.

The measure includes funding for a spec building suggested by The Alliance economic development group. $368,000 is budgeted for the project. Also in the budget is a new fire engine to replace a unit taken out of the rotation. Fire Chief Joe Holomy said he's in talks with an out-of-state department interested in purchasing the vehicle being retired.

Some capital projects of interest include the bike trail striping throughout the city, and improvements on the north part of Outer Belt West. Grant funds have been received to pay for both of those projects. Reconstruction of 3rd Street in the area of the CSX Railroad is a part of the budget, as is work on Gillenwater Avenue and a portion of trail in the area of the Truck Centers project on the west side of town. Almost $1 million is budgeted for the annual asphalt resurfacing program. Streets targeted this year include 4th from Elm to Hawthorne, 2nd from Roadway north to its end, Mulberry from Jefferson to Fayette, Main from Jefferson to St. Anthony, Clark and Lawrence Avenues from Park to Banker Streets, St. Louis from 3rd to 4th, Koester from Evergreen to Holiday, Shelby from Cherry to Maple, Cherry from Fayette to Jefferson, Wenthe from Evergreen to Holiday, and Rollin Hills Subdivision in coordination with sewer work in that area.

The budget calls for purchase of a facade for the Visitor Center. There had been discussion of selling the Visitor Center building, but city officials say that transaction is now off the table.

As to what happens next, the Council will hold a public hearing on the budget blueprint at their April 4 meeting, and then could vote to adopt the measure at their meeting on April 18. That would have the spending document in place for the start of the new fiscal year.

Greg Sapp spoke with City Administrator Jim Arndt about where things go from here after Thursday's meeting...