Terre Haute City Council narrowly OKs trash fee which begins in July at $10.25

The City Hall courtroom was packed and included many police and firefighters. Last week, the mayor had indicated that unless the trash fee passed, city layoffs would be needed and those would include public safety.

Council member George Azar introduced an amendment, which passed, that lowers the trash pickup fees to start at $10.25 per month this year, increasing 25 cents per year up to $11 per month in 2019. Previously, the proposal called for a trash fee starting at $12.50 per month and increasing to $13.25 in 2019.

Those voting in favor were Azar, Earl Elliott, Karrum Nasser, Don Morris and Curtis DeBaun IV. Those opposed were Martha Crossen, Amy Auler, Todd Nation and Neil Garrison.

A second amendment that passed provides for a 25 percent credit to city residents who pay a fee to Republic Services to recycle; it was introduced by Nation.

The votes on both amendments were unanimously in favor.

The ordinance also includes a 25 percent monthly credit for those who file for and receive property tax deductions based on the following: people over age 65; people blind and/or disabled; and disabled veterans or their surviving spouse.

About 14 people commented, with some opposed, and several in favor. Both Shawn Keen, acting police chief, and Jeff Fisher, fire chief, advocated in favor of the solid waste fee and raised concerns that if not passed, employee cuts would adversely impact public safety.

Keen said there is nowhere left to cut in his budget but personnel, but he pointed out six positions have been cut over the last several years, from 136 to the current 130 officers. To go much lower “really will affect services,” he said.

Among those speaking in favor of the trash fee was Paul Thrift, co-owner of Thompson Thrift, who recently signed a letter — along with 19 other community leaders — calling on the mayor to form a commission to evaluate local government efficiency. The commission would be a cooperative effort involving city and county elected officials and others.

But Thrift said he’s studied the city’s budget and recognizes a new revenue source is needed to deal with an upcoming cash crunch.  He sees the trash fee as part of the solution and the “most logical” revenue source, one that is widely used across the state.  “I urge you to pass this quickly — tonight,” Thrift said.

Hermanus Carson, who addressed the council last week, spoke against the fee “Just because other counties are doing this doesn’t mean that Terre Haute has to follow suit,” he said. He raised concerns about lower-income people being unable to pay.

“This is not the way to resolve the deficit,” Carson said. He advocated a study first.

Also speaking was Norm Loudermilk, former city councilman and a fire department arson investigator.  “Don’t think you’re up there all by yourself — that making this decision is you against the world.  We’re all out here supporting you.” 

Citizen Dave Thiemann spoke against a trash fee. “I don’t mind paying for trash, but I think the timing is ridiculous,” he said. He believes it should be paired with spending cuts to make it “more palatable.”

In a short presentation before council action, Mayor Duke Bennett said, “I wouldn’t be offering it as a solution if it wasn’t the right thing to do. ...  We have an opportunity to make a huge difference, make the tough decision that many others have already made, and get us where we need to be with our budget.”

Elliott, commenting after the meeting, said he voted in favor because “we need to begin to rebuild our cash balances and be able to pay our vendors in a more timely basis. In all the analysis I did, that was the most reasonable option for new revenue available to the council.”

Council member Amy Auler said she voted against the fee because when she walked her district and campaigned last fall, “a lot of people in my district spoke highly against it, and I represent people in the First District and I was just doing what they asked me to do.”

Crossen said she voted against because, “I’m concerned about the timing of the request and I’m really concerned about no provision for low-income individuals, as well.” Because it passed, she said she is also concerned “we won’t look at a more broad-based strategic financial plan for the city.”

Nasser said he voted in favor because, “I didn’t want to play roulette with public safety,” he said. The mayor said last week that without the trash fee, public safety employees would have to be laid off. But Nasser said he also expects the mayor to show leadership and look for ways to find efficiencies and cut costs.

The city needs the new revenue because of significant revenue losses caused by property tax caps, the mayor has previously stated. Tax caps have reduced general fund income by $10 million per year. Those revenue losses have contributed to the city’s escalating general fund deficit, which was $8.8 million at the end of 2015.

“This significant loss of revenue coupled with the long-term trash contract obligations require a new funding source,” Mayor Bennett stated last week during the council’s sunshine session.

The funds raised will go into a separate sanitary fund that would be used to pay Republic Services for residential waste pickup. Payment for that pickup, $2.6 million annually, now comes from the city’s general fund. The new fee will “will allow us to relieve the general fund of the annual expense,” according to a PowerPoint presentation last week.

The sanitary district has about 25,000 households, and of those, about 22,700 are in the city of Terre Haute; the trash pickup fee would be added to residents’ sewer bill and would be a separate line item. 

While Bennett indicated it would not be financially feasible to add recycling for all residents, a new community-based recycling collection service would be offered, where people could take their items. Recycling locations would include City Hall, Dobbs Park and other geographic areas around the community.

If someone does not pay their trash fee, trash pickup would continue “as we are under contract” with Republic Services, according to a PowerPoint presentation. The trash fee would be collected out of the first dollars paid on a person’s sewer bill. If the remaining amount of the sewer bill was not paid, the regular collection process for past due payments would be followed, the mayor previously stated.

Apartments with four or fewer units that currently have city trash pickup would pay the new fee, said Chuck Ennis, city engineer, before the meeting. Those are considered residential.

Any apartment complex with more than four units is considered commercial and must continue to provide its own trash pickup service, as is currently the case; it would not be subject to the new fee, Ennis said.

Businesses provide their own trash collection and are not covered under the city’s contract with Republic, he said. Businesses are not affected by the new fee.