The oldest building in O'Fallon will stand empty a little longer.

The City Council has postponed plans to renovate the historic Krekel Home, located on North Main Street across from City Hall. Built in 1857 by the city's first resident, Nicholas Krekel, the two-story house was the first building constructed in O'Fallon.

Originally a general store, the house most recently was used as a preschool but now is empty and shuttered.

In 2007, the council adopted a resolution authorizing the city to spend $275,000 to buy the home for historical preservation.

"That was, of course, just before the recession hit and we, along with everyone else, saw our budgets take a significant hit," city spokesman Tom Drabelle said on Friday. "That certainly has delayed the process of renovating the building. However, the ultimate goal of preserving the building for generations to come remains a priority for the city."

Renovation plans suffered another delay during the council's Dec. 8 meeting. The proposed 2012 city budget included $54,000 to begin the renovation process, but Councilwoman Rose Mack, Ward 2, requested the council remove that line item and shift the funds to the Community Landscape Improvement Project, a city-wide landscaping and beautification program.

The council voted 5-4 to approve Mack's budget amendment. Councilman Rick Lucas, Ward 1, was absent. Mack and councilmen Jim Pepper, Ward 2; Rick Battelle, Ward 3; and Jeff Schwentker and Bob Howell, both Ward 4, voted for the amendment.

Council members Bill Gardner, Ward 1; John Haman Jr., Ward 3; and Mark Perkins and Mike Pheney, both Ward 5; voted against removing funding for the Krekel Home.

Mack said she wanted to remove the funds because there are current members who were not on the council in 2007 when the initial plan was approved. She said she wanted current council members to have more time to review the plans and decide for themselves what they want to do with the house.

"I believe in preserving the history of our city, but before we put another dime in it, we need to know where we are going with it," she said.

Mack said the city had no clear idea of how to proceed with preserving the house. She said she did not understand how the $54,000 would have been used, and doubted that other council members understood. The money originally was allocated for the landscaping program, so Mack said it was appropriate to return it to that fund.

Lewis Swinger, president of the O'Fallon Historical Society, said the city formed a committee in 2008 to decide what to do with the Krekel Home. The city hired an architect to perform a feasibility study in 2009. The architect submitted a plan with cost estimates for restoring the house and using it as a museum, research center and meeting hall. The historical society would have managed the research center, Swinger said.

"It is a city asset that could be used by more than a few people," Swinger said. "Right now it cannot be used for anything. Any building that sits empty deteriorates."

Mack said restoring the house would cost $600,000-$1 million. Swinger said the architect's plan estimated the cost at less than half that amount.

Drabelle said the architect gave the city many suggestions on what could be done with the home. The potential costs varied greatly, depending on the project's scope. Until the council determines how the building would be used and adopts a plan of action, there is no way to determine how much it would cost, Drabelle said.

After removing the Krekel funding, the council voted 6-3 to adopt the 2012 budget. Schwentker, Pepper and Battelle voted no.

The budget includes $75.9 million in total expenditures. It adds a few new staff positions, including three full-time police officers. The city anticipates 2012 revenues totaling $72.2 million, with an expected 1 percent increase in sales tax revenue.