The Effingham City Council this week voted to implement a city-wide 1% sales tax and discontinue the 1% grocery tax, as well as the amusement tax, to help reduce property taxes.
The votes come after the state recently gave non-home rule communities – like Effingham – the option to implement their own 1% sales tax. Based on last year’s figures, the tax is estimated to generate more than $6.5 million. The revenue can be used for public infrastructure and property tax relief. The council discussed using the funds to eliminate city property taxes, which account for 15% of a property owner’s tax bill on average.
The 1% sales tax is excluded from titled vehicles, groceries and medications.
Starting Jan. 1, the state will eliminate the 1% grocery tax, and municipalities can implement their own 1% grocery tax. However, the council voted on Tuesday against implementing it. The council also voted to eliminate the amusement tax.
“For as long as I can remember, residents in the city have paid what I call a ‘30% penalty’ for living inside the city boundaries versus outside. We can’t fix all of that, but we’re fixing half of that with this action [passing the 1% sales tax],” said City Commissioner Hank Stephens. “Look at what we have done as a city council for the last five years. Our rate has reduced each year for the last four or five years. So we have not taken everything that’s on the table. This gives us an opportunity to essentially eliminate our share of the property taxes, which everyone will see when they get their tax bills next fall.”
Meanwhile, after a handful of Plan Commission meetings, the commission recommends the city council grant a Tower Use Permit for a wireless communications facility and tower at 400 Jcan Drive.
“The reason there was so much discussion was our ordinances’ goal is to make sure we don’t end up with more towers than what is necessary,” said City Engineer Luke Thoele. “So, they had to show that an existing communications tower was not feasible and any other tower was also not feasible.”
“Or any other city site,” said City Attorney Tracy Willenborg. “So it might be more appropriate because it’s more like an industrial-type area.”
After City Planner Greg Koester compiles all the documents together, the item will be put on the Omnibus Vote Agenda for a final vote.
Public Works Director Jeremy Heuerman updated the city council of Effingham’s 2050 Comprehensive Plan. City staff is going through the plan’s implementation matrics, which they hope to complete in the upcoming weeks. After this, the Zoning Board, Planning Commission and City Council will host a meeting to review the Comprehensive Plan draft. Then, the comments from that meeting will be brought to a city council meeting in December to adopt the final plan.
“There’ll be multiple meetings, public hearings and everything for the public to still take a crack at it and make any comments or suggestions that we’re always looking for,” said Heuerman. “But right now, it’s looking in pretty good shape.”
Lastly, Police Chief Kurt Davis presented Officer Ryan Holsapple with a commendation award for his dedication in solving a “complex and deeply sensitive sexual assault case in which all the victims were children at the times the crimes occurred,” said Davis. “Always remember your exemplary performance has made a lasting impact, not only on the outcome of this case, but also on the lives of the victims and their families. Citizens of Effingham are safer and better served because of your efforts.”
The next city council meeting is scheduled for Oct. 7 at 5 p.m.