Effingham holds public hearing on proposed $46.7 million fiscal 2026 budget; final vote set for April 15

The Effingham City Council on Monday held a public hearing on Ordinance No. 027-2025, the proposed operating budget for fiscal year 2026, and received a staff presentation outlining several internal reallocations and reserve updates.

City Administrator (unnamed) said total revenues for the proposed budget are $46,734,061 and that staff did not add new general‑fund expenditures in the presentation. “Total revenues is $46,734,061,” the City Administrator said, adding that transfers and internal reclassifications accounted for the changes shown since the March 18 special budget meeting.

The administrator outlined several specific adjustments: transfers previously recorded as $50,000 into the general fund, an additional $250,000 transfer to be recorded this year, and moving some past general‑fund payments tied to a mall into the appropriate business fund accounts. Staff also reported placing approximately $1,220,000 into designated reserves based on the treasurer’s report. Two TIF funds were adjusted to reflect $25,000 of oil‑and‑chip work in each fund, funded by reallocation within capital and construction line items rather than by adding new net expenditures.

Finance details provided by staff included total expenditures (without reserves) of $40,002,459 and $10,375,331 recorded as grants and loans; staff said the city’s operating cash/contingency and undesignated reserves meet the adopted targets. The administrator noted the motor fuel tax interest projection was increased from $5,000 to $50,000 and described a minor correction in the police pension line item reported during review; the transcript indicates a previous figure of $1,065,125 and a corrected figure that is unclear in the record.

No public speakers asked questions during the hearing, and the public hearing was formally closed after council members confirmed they had no further questions. The City Administrator said the final budget document will be placed on file and brought back to the council for formal approval at the April 15 meeting.

The presentation and discussion revolved around internal fund reclassifications and reserve reporting rather than new service expansions; staff emphasized that the net general‑fund bottom line did not change as a result of the adjustments.

Next steps: the council will consider the final budget for adoption on April 15; until then, the document remains in the public‑hearing stage.