Effingham council adopts 1% municipal sales-and-service tax to replace city property levy, repeals amusement tax; grocery tax not implemented

The Effingham City Council on [date in agenda packet] voted to adopt Ordinance No. 55, implementing a 1% municipal retailers occupation tax and a 1% municipal service occupation tax intended to replace three existing local levies and reduce the city’s portion of property tax.

The measure was introduced by staff and moved and seconded for passage. Council discussion emphasized that the change shifts a portion of revenue off the property tax levy and provides targeted property-tax relief; one council member said the change would reduce his personal property-tax bill by about $720. After debate the ordinance passed on recorded council votes.

The ordinance follows two public comments on the topic. Resident Dallas Baer told the council he opposed any new taxes and asked members to reject a 1% sales-tax increase, saying Illinois already has high taxes and local residents are “already taxed to death.” Baer concluded: “I respectfully request that you vote no on the 1% sales tax increase.”

Council members who supported the ordinance framed it as a revenue-structure shift that would reduce the city’s direct share of property tax and eliminate three smaller local taxes rather than increasing residents’ overall tax burden.

Votes at a glance

- Ordinance No. 55 (implement 1% municipal retailers and service occupation tax): Passed (motion made and seconded; recorded voice votes indicated majority approval). Outcome: approved; the council directed implementation per the ordinance language. - Ordinance No. 64 (implement 1% grocery tax): Failed/not implemented (the council voted in a way that declines to implement the grocery-tax authority the state will make available on Jan. 1). Outcome: grocery tax will not be enacted locally and the state change will eliminate it for Effingham residents. - Ordinance No. 63 (repeal amusement tax): Passed. Staff amended the effective date to April 30 so existing licenses do not require reapplication; council adopted the repeal. - Appointment ordinance (building official — Christopher Irvin): Passed. Council appointed Christopher Irvin as the city’s building official following staff interviews and reference checks.

Other actions and authorizations

The council approved a staff recommendation to seek a professional services contract with Crawford, Murphy & Tilly (CMT) to perform a local-limits renewal study and a PFAS-reduction plan at the wastewater treatment plant; CMT’s proposal to complete the work by the permit deadline was $112,700 to be paid from the sewer fund. Director Harmon described the work as mandatory under the city’s NPDES permit and said staff has funds available in the sewer fund to cover the contract.

The meeting also included routine approval of bills and requisitions and a resolution to give staff authority to enter an electricity-supply agreement that allows flexibility for market volatility.

What happens next

Several items discussed but not finalized will return to the omnibus vote agenda (OVA) once staff compiles full packets, including the planning commission’s lengthy recommendation and exhibits for a proposed 100-foot wireless tower behind Hardee’s on Jaycan Drive. The council recessed into executive session at the end of the meeting to discuss real estate, litigation, and review executive-session minutes.

(Reporting note: direct quotes in this article are drawn from the meeting transcript and from public comment; votes and ordinance numbers are recorded from the council’s agenda and on-the-record votes during the meeting.)