NORMAL - Residents likely will see a $2.50 hike in garbage fees starting in April.

It was one of several fee increases supported by the Normal City Council during a Saturday work session on the proposed 2008-2009 budget. The increases are designed to cover the gap between the amount charged for a service and the actual cost of providing it.

Public Works Director Mike Hall originally proposed a $5 per month hike in the garbage fee, doubling the $5 per month residents now pay.

"When (the fee) was established in 1993, it was designed to cover 50 percent of the cost (of collecting garbage)," Hall said. "Now only 29 percent of the costs are covered by the fee."

The fee has not been changed since the council adopted it.

"Fifteen years is too long to wait to (hike) it," Councilman Jeff Fritzen said. "That's why we need a bigger increase."

Council members rejected the idea of implementing the full $5 increase now, but they didn't reject it totally. Members agreed to increase it another $2.50 a month in three years.

"I think that makes good sense," Councilman Chuck Scott said. "It will offset some of the costs."

In addition, he said, in three years, residents will get something for that increase. That's when a townwide automated waste removal system will be implemented and all residents will be required to have a garbage tote. The town has budgeted money to pay for those totes.

City Manager Mark Peterson said the $365,000 in additional revenue that will come from the initial $2.50 increase in garbage fees will be put in the town's reserve fund. The town's goal is for that fund to have enough in it to cover 10 percent of its expenditures and transfers.

Right now, Finance Director Ron Hill said, the fund is slightly below that target: It has $4,066,398, or 92 percent of the target goal of $4,432,745. Hill is projecting the fund will dip to about 89 percent of its $4,620,408 goal for fiscal year 2008-09.

Part of the problem is a decrease in some key revenue sources, Hill said. While the town's 1 percent share of state sales tax revenue is up this year, the increase is less than expected. Utility tax revenue also is lower than projected because the state changed the way the electric tax is figured and because there is no utility tax on cell phones.

The town also is seeing a steep increase in construction costs, which would affect many projects, including those uptown.

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Raising revenue

The Normal City Council supported several fee increases in the proposed budget for 2008-09, which begins April 1. The council has not yet approved the budget. Supported increases include:

- A hike of $6 per nine-week session of the before-school program and $4 per nine-week session for the after-school program.

- Various increases in registration fees for Children's Discovery Museum programs.

- A $25 hike in individual season pool passes and a $10 hike in family season pool passes. The passes would be available to all Twin City residents and the higher, nonresident pool pass would be eliminated.

- $1 increase in Ironwood Golf Course greens fees and driving range fees.

- Various increases in filing fees at the city clerk's office and the Inspections Department.