The city's proposed fiscal year 1990 budget isn't calling for any rate increases, but residents may still see their garbage rates increase 18 percent if a new landfill proposal goes through.

Residential garbage pickup fees may go from $4.10 monthly to $5, commercial loader dump fees may increase from $8.10 to $9, non-residential pickup could go from $5 to $10 and non-residential dump fees could go from $10 to $15, Mayor Curtis Arrington said.Funds from the rate increases, which the City Council discussed at its last meeting, would go toward purchasing a new 60-ton track hoe, Arrington said.

The equipment would help the city bring its landfill into compliance with new, stricter guidelines from the Utah Division of State Services on Solid and Hazardous Wastes governing landfills. The city does not plan to participate in the Bayview landfill, Arrington said.

The track hoe "would allow us to dig a trench to cover up each day's dump. That's a significantly different way than what we're doing now." The trench digging would comply with state codes requiring at least six inches of earth be placed after each operating day over all waste materials.

Cost of the new equipment - estimated at $103,000 - and new fencing along the existing landfill's north and east sides would be paid off in three years by rate increases, Arrington said. "The increased revenues, about $42,600 yearly, would pay about $129,000 in that time."

The fencing would also fulfill guidelines that access to the landfill be controlled and that trash be prevented from blowing away.

However, the rate increases, which would increase the city's overall indebtedness, were not included in the city's proposed new budget, Arrington said.

The budget, which is already late in being submitted to the state and was supposed to be in effect July 1, calls for $5.5 million in capital expenditures - a 0.4 percent increase over last year's $5.48 million budget, Arrington said.

The increase is not coming from any rate changes, though, Arrington said. "We've proposed a 2.5 percent pay raise for full-time city employees, and we'd like to replace two significant pieces of city equipment": a front-end loader and a backhoe in the city cemetery.

The equipment will be obtained through a lease-purchase agreement. Additional funds included in the new budget will go toward improving city streets, Arrington said.

Councilman Stephen Hanson, however, thinks the city should spend even more to improve and maintain city streets. "To me, this figure of $270,000 is awfully low to spend on the roads, since approximately $63,000 has already been spent. We need to put in $330,000 to get the roads to where we can be proud of them, and keep them that way."

The council is expected to approve the new budget at its July 19 meeting.

In other action, the council rejected a motion to let residents vote for the form of city government they want. Hanson, who introduced the measure, said residents should be able to decide whether they favor government with a city manager, city administrator, public works director or full-time mayor.

But Councilman Kent Fuellenbach said residents "already made their decision when they chose people for the council - who can make that decision. That's how the representative system works."