Wednesday, July 18, 2012

Elkhart Looks to Garbage Collection Fee to Help Ease Budget Deficit

From the Elkhart Truth:

City residents will have to pay a monthly fee for garbage collection beginning in 2013 if plans by the city are approved by City Council.

At the same time, the city is also seeking to discontinue garbage pick-up in mobile home parks, a move that could force owners of the parks to hire private collection services.

Eliminating mobile home parks, which the city estimates involves about 2,000 customers, would save the city about $143,000 per year, according to Laura Kolo, the utility service manager for the city who spoke about the plan Tuesday at the board of works meeting.

Mayor Dick Moore’s administration tried to pass a garbage fee ordinance in 2008, but council voted down the proposal, 5-4.

Under the current plan, residential customers would pay $11.35 per month.

On Tuesday, the board of public works approved a resolution with a 3-1 vote to send the proposal to city council for consideration.

Council is expected to take up the issue at its meeting Aug. 6, but may very well send it to the finance committee for a recommendation. Ultimately, though, council will have the final vote.
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Under current circumstances, the city is looking at a $2 million deficit for 2013 and shifting garbage expenses is part of the city’s on-going effort to balance the budget.

In passing the legislation, state lawmakers suggested cities and towns would have to turn to user fees to make up shortfalls in revenues. Elkhart’s proposal is an example of that, Kolo said.
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