Published on April 7, 2026 7:44 pm
Last Updated on April 7, 2026 7:46 pm
The Effingham City Council Tuesday reviewed the tentative budget for the fiscal year that begins May 1.
Local resident Mark Mayhood repeated concerns he has shared in the past regarding vehicle purchases, saying the City could save money by going through local dealerships.
City Administrator Steve Miller contended that previous efforts have resulted in not receiving the vehicles on time or not as ordered.
The budget will be adopted at the next Council meeting.
The Council delayed action on liquor licenses for Upper Deck Bar and Grill at 4th and Fayette, but approved the purchase of several small parcels of rights-of-way and easements for improvement projects. An intergovernmental agreement between the City and County was approved for the resurfacing of the parking lot north of the County Office Building and the County Government Center downtown. A vote on a zoning text amendment concerning vacation and short-term rental properties ended up in a 2-2 tie with Commissioner Jake Niebrugge not present for the meeting, so the matter will be revisited. Commissioners Larry Micenheimer and Libby Moeller voted for the change, while Mayor Mike Schutzbach and Commissioner Hank Stephens voted against, but for different reasons. Stephens said he doesn’t agree with restrictions on where the rentals can take place, while Schutzbach doesn’t agree with letting the rentals go in any residential areas.
The Council approved a Downtown/Southtown Business Area Redevelopment Program agreement with Ed Thomas for a project at Bike N Hike. The project cost is just under $5,000 with the City covering 25% of the cost. Also approved was a residential project with John Hartke at 107 West Eiche Avenue on a similar cost breakdown. The Council also awarded a bid for an EV charging station at the former fire station location downtown on Merchant Street to Grunloh Construction for $97,000, and awarded a generator maintenance agreement for 17 units around the city for just over $33,000.
Several matters were up for discussion, not for a vote. That included 4% pay raises for City employees not covered by a union contract. Also discussed was water works rate hikes of 2% in each of the next four years. There was also discussion of proposals for the Heritage Avenue residential development, which if finalized at the next meeting could see the start of 18 single-family attached dwellings, with four units starting this spring.
