During Effingham’s City Council meeting, Public Works Director Jeremy Heuerman brought two loan options to the council for the EPA-mandated upgrades needed for the city’s wastewater treatment plant. The EPA is mandating that wastewater treatment plants in Illinois reduce their phosphorus levels. The project is estimated to cost $20 million, and it needs to be completed by 2030.
The city heard two options. The first is to secure a $17 million bond with a 4% interest rate over 20 years. The City would pay $1.45 million each year on this, plus $9 million in interest. The second option is to secure a $17 million State Revolving Fund (SRF) loan through the EPA with a 1.62% interest rate over 30 years. The city would pay about $716,000 each year, plus $4.5 million in interest.
Heuerman is confident that the city could receive at least 15% principal forgiveness, which would save $1.5 million. The city has also taken out an SRF loan for a ditch project in 2000. However, the City needs to apply for this loan, so the funds are not guaranteed.
The Public Works Department would draft a project plan, submit it to the state and be in the running for the State of Illinois’ 2027-2028 fiscal year loan. If accepted, the City would then open bids for construction and continue with the project.
Heuerman recommended the SRF loan to the council.
“It is a complete overhaul of the wastewater plant. The last time we did a big project like this, Steve [Miller] was in charge. It was the ditch. That was a $6 million bond. He went through EPA, as well,” said Heuerman. “Things have changed. All of our equipment down there is getting close to 30 years old, so this does incorporate some new equipment to be replaced, as well as the biological and chemical reduction cost for the phosphorus to meet the new limit.”
City Administrator Steve Miller said that the city’s sewer and water rates are “really pretty good,” but Heuerman mentioned that the rates are so good that it disqualifies the city from applying for water and sewer grants. Now, they’re applying for storm sewer grants.
“Getting ahead of this thing like Jeremy has is really a big deal,” said Miller.
Heuerman will bring the item back for more discussion once the cost of the project plan is known.
Meanwhile, City Planner Greg Koester brought a text amendment to the council regarding short-term rentals. Koester said there are three short-term rentals not currently operating within the City’s zoning ordinances. This amendment would allow anyone – regardless of which zoning district they’re in – to apply for a special-use permit.
Special-use permits are granted by the City on a case-by-case basis, and the City considers multiple variables before granting them, such as zoning and if the short-term rental could affect property values. City Attorney Tracy Willenborg noted that special conditions can be put on specific sites, and special-use permits can be revoked depending on the agreed upon terms and conditions.
Although Mayor Mike Schutzbach is in favor of short-term rentals, he continues to be against having them in residential neighborhoods.
“I don’t believe that most people want to roll the dice to make one of the biggest purchases that they would have in their life – that being buying a house – and then not have a relative assurance that the nextdoor neighbor’s not going to turn into a revolving door,” said Schutzbach. “When you have a rotating house… you don’t know who may be coming to visit next door, and I don’t think it’s fair for our residents that may have young kids or live alone or whatever, and it would just be an added worry. That’s where I continue to stand on that and continue to say that I’m not interested in the residential area.”
City Commissioner Larry Micenheimer said that as a homeowner, people can’t control who purchases the house next door. However, he suggested making the special-use permit have some kind of protection, so not just anyone can open a short-term rental and there are ways to shut it down, if need be.
The item will be brought to the Feb. 10 Plan Commission meeting for more discussion, and then it will be back at a future City Council meeting.
The next City Council meeting is scheduled for Feb. 3 at 5 p.m.