City Council Seeks Grant for Housing Rehabilitation

The Effingham City Council Thursday voted to seek just under a half-million dollars to fund a housing rehabilitation project in the central part of the city.

City Engineer Jeremy Heuerman said an area east of Banker Street and north of Wabash Avenue was surveyed. 59 homes in the area qualified, but Heuerman said 10 homes were found to be severely deteriorated. He said the goal is to bring the homes up to code.

The Council voted to contribute $10,000 as the City's share of the match to obtain the grant funds that would total $498,566. Heuerman said the City will know in Spring whether they will receive the funds. South Central Illinois Regional Planning and Development Commission will handle administrative duties, the City will act as the banker for the funds, and Coles County Regional Planning and Development will do the inspection work to make sure the homes meet City codes once the work is completed.

Heuerman said $9,500 will be sought from CEFS Economic Opportunity Corporation for weatherization work in hopes of expanding the number of homes rehabilitated to 12 or 13, rather than 10.

The funds are extended to the homeowners in the form of forgiveable loans. The homeowner must pledge to live in the home five years after the project is completed, or they have to pay back the loan funds on a pro-rated basis. If they sell the house one year after the work is completed, they would have to reimburse 80% of the funds.

Council members Thursday also set the salaries for the mayor and commissioners to be seated in May 2019 at $20,000 for the mayor and $12,000 for each of the commissioners. The vote was 3-2 in favor with Commissioners Kevin Esker and Don Althoff voting against. Both had suggested a percentage increase when the matter was discussed a couple of weeks ago. Mayor Jeff Bloemker and Commissioners Merv Gillenwater and Kevin Willis voted for the increases from the current rate of $16,000 for the mayor and $10,000 for each commissioner. Gillenwater offered that perhaps the pay rate for the mayor should have been increased by $2,000 when he wrapped up his term as mayor and then a $2,000 hike this time wouldn't have seemed so considerable. Instead, the $4,000 increase was approved this time.

The Council also accepted a proposal from Barbeck Communications Group for the 911 communications switchover from the current 911 location in City Hall to the new police station next door. The work will cost $32,158.16. 

Council members also discussed a tentative tax levy for the new fiscal year. The total levy for the City and for Effingham Public Library is estimated at $4,595,261, a 3.74% increase. Acting City Administrator Kelsey Lock said increased cost of building materials, the increased cost of living, and the anticipation of the end of the city's Tax Increment Financing district were all factors behind the proposed increase.