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 City Council Discusses Taxes, Enterprise Zone Expansion, Convention Center Improvements 

Published on August 5, 2025 7:37 pm
Last Updated on August 6, 2025 9:04 am

The City of Effingham
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Taxes were discussed at Tuesday night’s Effingham City Council meeting.

The State is ending its grocery sales tax as of January 1st, but municipalities have the option of instituting their own tax at that time. That is, in part, because the State will no longer be contributing funds to the municipalities. For Effingham, that means about $700,000 annually.

City officials suggested that if the sales tax was enacted, a corresponding reduction in the city’s property tax could occur.

All of this was discussion, not a vote, and came up at the end of the meeting. More information will be forthcoming. Mayor Mike Schutzbach said more discussion amongst the Council will come first.

Council members heard from Effingham County Board Chairman Josh Douthit and Board member Jeremy Deters who were on hand to discuss expanding the county transportation network and to see whether the city would contribute to the cost of the expansion. Deters has already talked with communities in the eastern part of the county for contributions. More discussion is expected. Douthit also thanked the City for their part in the airport runway expansion project and in the new gazebo and other amenities on the Courthouse lawn.

Tom Webb of the Effingham Police Department was welcomed as Deputy Police Chief. The appointment will be finalized at the next Council meeting. Police Chief Kurt Davis is gone for training, so Webb is on the job as acting chief until Davis’ return.

There was discussion about a golf cart traveling on South Banker Street and Commissioner Hank Stephens shared information from a citizen that a youth “whose feet could barely reach the pedals” was seen driving a golf cart. Webb got information and will look into the incidents.

City Administrator Steve Miller discussed that another round of municipal aggregation rates that could affect electric rates will likely happen this fall. When Miller was asked by Stephens what customers should do, he said more would be known this fall so said “wait until October and check the rates”.

The Council approved an expansion of the boundaries of the City/County Enterprise Zone. The Teutopolis Village Board is to vote on the expansion at their meeting Wednesday night.

There was discussion of a grant that would help finance interior renovations at the Keller Convention Center. The furniture and other amenities would become the property of the City. This project follows planned reconstruction of the parking lot at the Convention Center. There was grumbling about the proposal, but Stephens said the City needs the Convention Center and the hotel/motel revenue it generates. There are reports that entities now holding their events in Effingham are looking at other venues.

The Council accepted a proposal from McCarthy Improvements for reconstruction of Evergreen Avenue from Willenborg Street west to Oceola Street. The project was awarded for $1,733,731.