IL: City receives funding request to expand public bus route

Effingham County Board member Jeremy Deters recently requested funding from the city for the CEFS ETrax public transportation service, which operates within the city.

Currently, ETrax drives a loop around the north half of the city of Effingham. Deters would like to expand the service to the south half. While people on the south side can call to request a bus, there are no scheduled stops there.

Deters, who oversees the county’s transportation committee and funding for the service, is asking municipalities in the county for donations to secure additional state funding. Deters said Effingham County receives matching funds of 65% from the state for a maximum of about $740,000.

“I think when people find out that it’s actually here, it’ll get utilized more. We’ve seen a steady increase in ridership as far as ETrax goes lately, and that’s why we’re excited about trying to get a loop going,” Deters told the Effingham City Council during its meeting last week. “My whole goal as the chairman of that board is to make sure that our disadvantaged populations have access to transportation so that they can go to doctors’ appointments, get groceries, things like that.”

So far, Deters has asked and received funds from Teutopolis, Montrose and Dieterich. Teutopolis and Montrose are making their donations part of their annual budget, and Dieterich is donating on a case-by-case basis, said Deters.

“I applaud Jeremy,” said Effingham County Board Chairman Joshua Douthit. “He took it kind of upon himself to go to the different municipalities and villages with the key result being to help our citizens with transportation, and I know that’s one of the identifying factors that people tell us that’s preventing them from getting to medical appointments; that’s preventing them from getting to employment, job interviews and those types of things. So I think it’s important.”

No formal action was taken, but Mayor Mike Schutzbach recommended that council members decide whether to move forward with any action. The city council will revisit the request at a future meeting.

In other news, City Administrator Steve Miller reminded the council that the state of Illinois will no longer be collecting a 1% grocery tax starting Jan. 1, 2026. Municipalities will have the option to replace the tax locally. Miller estimated, the city collected between $600,000 and $700,000 last year from the tax.

In addition, legislators allowed municipalities to implement a separate 1% sales tax. While the grocery sales tax can only be implemented at 1%, Miller said the sales tax can be implemented in quarter-of-a-percent increments up to 1%. Based on the Department of Revenue figures, Miller added the 1% tax would generate about $6.5 million. He noted the sales tax can be implemented without implementing the grocery tax.

“If a 1% sales tax was implemented, the thought would be to reduce the city’s portion of the property tax, which, approximately, this year would be $4.3 million. Next year, we’d probably be looking at $4.4 million,” said Miller. “So, those funds could be used to offset the city’s portion of property tax. So, if your property tax on your bill is $800 or $1,000, that would go basically down to a very, very small number.”

Miller said city staff have also discussed internally whether to continue the 5% amusement tax. The money generated goes into the city’s tourism fund.

Miller would like to place all three taxes for discussion at the next meeting. If the city wants to implement the grocery and sales taxes on Jan. 1, 2026, he advised the council needs to have the documentation to the state by Oct. 1.

“It’s important that the citizens of Effingham understand that it’s not just another tax with no benefit,” said City Commissioner Jake Niebrugge. “It’s a tax with a benefit that’s going to be paid by mostly people from outside of Effingham.”

The three taxes will be formally discussed at a future city council meeting.

Meanwhile, Economic Development Director Todd Hull brought a request to the council from the Thelma Keller Convention Center asking for a second grant, this time for $300,000. The money would go toward interior improvements, including a new sound system, new chairs and new carpet. The funds would come from the city’s hotel/motel tax, like the first one.

“There’s several large events and conferences that are requesting some improvements to the convention center, or they are looking to relocate to other venues,” said Hull. “It’s something we need to do to continue having those [events] come here, generate the hotel/motel tax, sales tax at gas stations, retailers and so forth. It’s pretty crucial to keep them coming and to make these improvements so they will come.”

Like the first grant, the agreement stipulates that the convention center must operate as a convention center for 10 years; otherwise, it must repay the $300,000 to the city.

“It really is an economic engine,” said City Commissioner Larry Micenheimer. “The money will be recouped in sales tax… It helps a lot of people.”

“The convention center’s something of a unique animal, and we are dependent upon their sales tax. Not to mention, I think we take hotel/motel tax for granted,” said City Commissioner Hank Stephens. “We have a very strong revenue stream from hotel/motel tax, and I think this is something that we just need to do to make sure we don’t lose this asset, which is a driver of so much hotel/motel tax.”

The grant will be brought back for discussion and approval at the next city council meeting.

City Engineer Luke Thoele is requesting to construct a 1,100-foot street extension to McGrath Avenue because the city has been awarded $978,900 of Economic Development Program and Truck Access Route Program grant funds from the Illinois Department of Transportation. The grant money is required to be used for the McGrath Avenue extension in cooperation with Stevens Industries.

“We get so many grants, we kind of take it for granted. But that was nearly a million dollars. So that’s not tax dollars that’s spent, that’s a grant,” said Micenheimer. “It also helps Stevens out a whole bunch. They’re saving a bunch of money by bringing in an operation here, so it’s a win-win for everybody.”

Thoele is still looking for Department of Commerce and Economic Opportunity grants to cover the rest of the project.

Tourism Director Jodi Thoele requested road closures and changes for Village Wine to have Effingham Cruise Night on Sept. 6 from 2 to 11 p.m. The road closures and changes include:

Two-way traffic on Jefferson Avenue between Fourth Street and Banker Street
Closing the left-turn lane and right-turn lane at the intersection of West Jefferson Avenue and Keller Drive
Closing Fourth Street from Jefferson Avenue to Washington Avenue
Closing the city parking lot at the corner of Fifth Street and Washington Avenue
Reserving the north side of Jefferson Avenue at Fourth Street for diagonal parking from Fourth Street to Third Street
Closing Banker Street from Washington Avenue to Section Avenue
Closing Fifth Street from Washington Avenue to Section Avenue
Closing Fourth Street from Washington Avenue to Section Avenue
Closing Front Street from Jefferson Avenue to Section Avenue
Closing the city parking lot at the southwest corner of Fourth Street and Jefferson Avenue

“They’re trying to continue to expand the event. They’ve got a low-car night the night before, a scavenger hunt in the morning with the cars, a car show in the afternoon and then the cruise in the evening,” said Jodi. “So they continue to build the event bigger and bigger every year. I know a lot of people enjoy this one.”

Miller informed the council of the new agreement between the City of Effingham and the Illinois Fraternal Order of Police Effingham Lodge 209, which enters them into a collective bargaining agreement from May 1, 2025, through April 30, 2028.

The next Effingham City Council meeting is scheduled for Aug. 19 at 5 p.m. in the council chambers.

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