Trash rates will go up - the question is how much.

The Churubusco Town Council spent much of Wednesday night’s meeting debating exactly how much the rates should increase. 

According to the new five-year contract between the Town and National ServAll, trash rates will increase for the town to $10.76 a month the first year (residents now pay $9.30 a month); $11.30 the second year; $11.86 the third year; $12.46 the fourth year; and $13.08 the fifth year. National ServAll representatives said the increases were due to rapidly increasing fuel costs. 

Town Council President Viv Sade Rosswurm said she was against adding to the increase established in the new contract, and in favor of keeping the new rate at $10.76 a month.

“I’m very reluctant to increase any rates,” Sade Rosswurm said. “I know all the utility companies are doing it, but it’s hitting people hard.”

Council members John Hart and Frank Kessler said it was necessary to add the town’s administrative costs to the contract amount so that the town does not go “into the red” on garbage collection.

Hart suggested $2 or $3 above the contract rate, but Sade Rosswurm said she would not agree with that amount.

Kessler suggested going halfway, or adding $1.50 to the $10.76 rate, which Sade Rosswurm and Hart were able to agree upon.

“If we find that the $1.50 is too much, we can always drop it or adjust it next year,” Hart said. “But I don’t think that will be the case.”

Sade Rosswurm said she wanted it noted in the garbage ordinance that the contract rates must be revisited every year. “I don’t want (the Town) to make money on this,” she said. “I just want them to cover their costs.”

Kessler said that the rates Churubusco residents pay for garbage collection and recycling were low compared to the town’s rural neighbors. “In the country they pay three times - or more - for garbage removal,” he said.

A public hearing regarding the new fees will be held at 6:30 p.m. prior to the next council meeting on Aug. 6. 

In other council business:

• President Viv Sade Rosswurm asked if fellow council members, Frank Kessler and John Hart would be in agreement if she contacts several engineering groups to ask about submitting bids for proposed walking/fitness trails in and around Churubusco. “We’ve been talking about this for five or six years,” Sade Rosswurm said. “I’d really like to contact a professional engineering firm about getting the ball rolling.” All council members were in agreement. Sade Rosswurm will draft a letter and send it to engineering firms that the town has had contact with in the past.

• The Churubusco Town Council decided to move ahead with a proposal for annexing a portion of land on the East side of U.S. 33 (Main Street) between Mahle Corp. (formerly Dana) and running south to C.R. 375. The annexation could not take place until early 2010 due to state laws that prohibit annexation during the year before a census. “I definitely think we should move ahead with this and we’ll be ready when the time comes,” Kessler said.

• The council approved a budget proposal for 2009 which included $688,149 in the General fund; $66,200 in the Park Fund; $180,193 in the Motor Vehicle Fund; $10,000 in the Local Roads and Street Fund; $14,000 in the Cumulative Capital Improvement Fund. Pending two public hearings on the proposed budget, it could be approved by Aug. 20.

• The Council tabled a discussion on the Smith Township Fire Protection agreement for 2009. The proposed agreement called for a payment of $31,185, with half due in June of 2009 and the remaining half due in December. The cost compares to $29,500 for 2008. Township trustee Don Amber said the increase in costs are “due to increasing fuel costs,” according to Gerri Johnson, clerk-treasurer.

• The minimum wage law will result in an increase for some town workers as of July 24, Johnson said. That’s the day minimum wage increases from $5.85 to $6.55. She said the amount allowed for mileage reimbursement also had increased.Effective July 1, Johnson said, the state’s recommended rate for reimbursement will increase from 40 cents a mile to 44 cents a mile. The federal reimbursement rate is increasing from 50.5 cents a mile to 58.5 cents a mile. The Town uses state guidelines in calculating mileage reimbursement for town employees.

• Council members agreed to move $300,000 from the water fund account into a CD at Star Financial Bank, which had the highest interest rates of three banks who submitted quotes.

• The council approved a revised cost analysis for the proposed water treatment plant and water system improvement project, adding about $200,000 to construction costs, bringing the total to $2.1 million. The town is currently in the process of trying to obtain a state grant to fund a portion - $500,000 - of the project. Recipients of the grants are announced in November.