City Council Discusses Tax Levy Options

COVID-19's impact on tax revenues helped shape the Effingham City Council's thinking on the tax levy for the coming year.

The Council Tuesday decided to proceed with a 2% increase in the overall levy, expected to generate an additional $113,000. The increase will help the City pay the entire cost of police and fire pensions.

City Commissioner Hank Stephens noted that 45% of the levy is for those two pensions. Mayor Mike Schutzbach countered that the amount made available for pensions last year might have been insufficient and helped contribute to the increase this year.

The levy will be passed by the Council in December.

Council members also informally agreed to abate the levy by the amount needed to make payments on four bond issues being retired by the City. The bonds earned enough interest that funds will not need to be levied to make the bond payments.

The Council had Karen Feldkamp of the Effingham County Health Department as a guest. Feldkamp shared with Council members her concerns that going inside for the winter and the holidays could increase the number of COVID-19 cases. Feldkamp said "big gatherings" are the main source of concern, and not necessarily wedding receptions. She said gatherings of 25 or so people can be a source of trouble if one person contracts the virus and attends the gathering.

Masks and social distancing are sources of controversy among some, but Feldkamp said, "We've seen that masking and social distancing make a difference."

The Council amended the Municipal Code regarding fences, specifying what type of fences will be permitted and where they can be placed. Also approved was the purchase of property from Seth and Jennifer Wilson for a water main improvement project.

Council members also discussed whether to issue a liquor license to Golden Corral. The restaurant chain has allowed local operators to consider alternative revenue sources and one option is a liquor license to sell alcohol by the drink. The business now hopes to open March 1 after COVID-related delays. The license will be considered closer to the time of the restaurant's opening.

The Council discussed a lease extension agreement with Kirby Foods, an engineering agreement for design work on an extension of Thies Avenue in the area of John Boos and Company, ways to determining a claim made under the public safety employee benefits, and a multi-jurisdictional all-hazards mitigation plan that could make grant funds available. The County Board approved the plan at their meeting on Monday.