Effingham reviews budget, reserves and $13M Ford Avenue grant application

Effingham city staff presented a budget workshop that outlined general-fund revenues and reserves, capital projects funded by grants and loans, and planned maintenance work, then the council voted to close the session.

City staff opened the discussion with a general-fund revenue review, saying, "Our property tax levy is about $4,300,000," and noting roughly $1,000,000 from the levy is transferred to the police pension and another $1,000,000 to the fire pension. The presentation showed an end-of-year carryover of about $16,000,000 (treasurer's numbers were expected to increase that figure to roughly $17,020,000) and designated reserves earmarked for IMRF and Social Security obligations.

Why it matters: staff said the designated-reserve balance — and conservative contingency assumptions that exclude grant and loan proceeds — will determine whether planned projects proceed or are delayed. Presenter (staff) said contingency was roughly 2% and undesignated reserves about 16.6% of operating expenditures.

Staff flagged several major, grant-dependent capital projects. The city has applied for a Ford Avenue grant of $13,000,000, with a proposed local match of $3,300,000 (budgeted as bond proceeds if awarded). Jeremy, a city staffer on capital projects, outlined other work in the CIP, including Merchant Street reconstruction phases, JC storm-sewer work (contracted at about $466,000), a largely grant-funded McGrath extension (roughly $1.6M), Evergreen Phase 3 and a West Airport Road project for which the city reported "we got a $3,000,000 grant," covering roughly 80% of that project's construction costs.

Public-safety equipment and restricted funds were highlighted. The fire chief described proposed capital requests (training-ground replacement about $750,000 and a ladder truck estimated at $2,000,000 contingent on grants). The police chief said drug-forfeiture proceeds from a multi-year investigation yielded a distribution (roughly $300,000 returned to the department) and that those funds would buy mobile radios for patrol cars "at no cost to the taxpayers."

Utility funds: staff described the water fund (EOY carryover ~ $2.9M; metered sales ~ $3.7M) and sewer fund (EOY carryover ~ $3.8M; metered sales ~ $3.5M, a 5% increase). The sewer presentation emphasized a pending unsewered-communities grant of $5,000,000 to extend sewer service uphill, a lining grant for about $1.2M, and an anticipated phosphorus-control program that will likely require a future bond (staff estimated construction in the $8–$10M range when it advances).

TIFs and business districts: staff reviewed TIF Central and Industrial funds, transfers between TIFs, and projects financed through TIF (notably Santa Maria's extension to 4th Street). The presentation noted rehabilitation programs (commercial facade grants and residential rehab funds) and contingencies tied to a possible Village Square Mall sale that could return proceeds to the industrial TIF if appellate processes conclude in the city’s favor.

Budget posture and next steps: staff said they would update budget pages after the treasurer finalizes the report, watch spending in the next one to two months, and postpone projects if reserves decline. The workshop closed with no public participation submitted, a motion by Commissioner Stevens and a second by Commissioner Meisenheimer to end the session, and a roll-call showing Mueller, Gillenwater, Meisenheimer and Stevens voting "Yay." The motion carried.

Votes at a glance

Motion to close the workshop session — mover: Commissioner Stevens; second: Commissioner Meisenheimer; outcome: approved by roll-call (Mueller — Yay; Gillenwater — Yay; Meisenheimer — Yay; Stevens — Yay).

Sources: Workshop transcript and staff presentations recorded during the Effingham budget workshop. The article attributes direct quotes only to speakers recorded in the transcript (Presenter; Chief; Police Chief; Jeremy).