Published on January 6, 2026 7:29 pm
Last Updated on January 6, 2026 7:33 pm
Considerable discussion was heard at Tuesday night’s Effingham City Council meeting as to how hotel/motel funds could be utilized in the city.
The discussion followed Wheat Penny Co-Owner Michael Brummer’s request of the Council to not vote on allocating up to $5,000 to Wheat Penny for their “Miracle at Wheat Penny” event. In Brummer’s words, it was “not worth the time, the headaches, and the drama” the issue has generated. Approximately $25,000 in private capital was invested prior to any funding request, with all financial risk assumed by the business.
City Commissioner Libby Moeller, who has championed the issue, said she was disappointed in Brummer’s decision, but respected it.
The agenda item to award the funds died for lack of a motion. The discussion, though, led to more debate over how hotel/motel funds should be used, including a reminder that close to $1 million in hotel/motel revenue was used for additional parking and for sound equipment at the local convention center.
City Commissioner Hank Stephens said, “this (hotel/motel tax funds) is not taking money out of the pockets of our citizens. This, by and large, is money generated by visitors to Effingham. We need to figure out how to best use the funds.”
Mayor Mike Schutzbach reminded that the Council earlier set aside $1.5 million for an Effingham Showcase Center that was to be located near the interstate. There hasn’t been much said about that proposed project, but City Administrator Steve Miller said there are a couple of others where hotel/motel funds could be utilized.
That funding doesn’t account for all of the hotel/motel funds available. City Commissioner Jake Niebrugge said, “we have had a surplus each year since 2022.” City Commissioner Larry Micenheimer said, “we aren’t supposed to be a bank; we could look at where the funds could be used.”
Niebrugge noted that there are 10 people on the City’s Tourism Advisory Board and they get to use just $30,000 in funds. He said “heads in beds” should not be the only guideline in using hotel/motel tax dollars.
Local resident Mark Mayhood encouraged utilizing the wisdom of local residents to open up the process of utilizing local businesses to draw people to Effingham.
Council members also heard from City Planner Greg Koester, who provided an update on the Effingham 2050 Comprehensive Plan. Koester said a special meeting is scheduled for January 22 to review the proposed plan involving members of the City Council, Plan Commission, Zoning Board of Appeals, and the Comprehensive Plan steering committee. The goal is a vote on the plan by the City Council at their March 3 meeting. The proposed plan is on the City website for review by local citizens.
City Director of Public Works Jeremy Heuerman shared that after a grant request for infrastructure was denied, that the request has now been approved. The City will receive $1.5 million for storm sewer improvements along Wabash Avenue in the area of South Side School. The City will need to provide a 20% match…$300,000…to move ahead with the project.
