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The Town of Chesterton’s tally of outside contractor costs for cleanup from the Aug. 11 derecho has grown to $3.885 million.

Assistant Street Superintendent Dan Moy told the Chesterton Town Council Monday that the main contract for debris pickup increased to $3.4 million from $2.25 million.

Moy said the increase can be attributed to additional work that was needed to trim hanging trees and clear debris from the 3.1 miles of the Prairie Duneland Trail that is the town’s responsibility.

“The numbers are headache level high at this point,” Moy said.

However, the town is eligible to receive 75% reimbursement from the Federal Emergency Management Agency (FEMA) and the state has promised to pitch in an additional 18.5% to cover the costs.

The town plans to temporarily use money from its Tax Increment Financing (TIF) fund — property tax money collected within a designated district — to pay for the contract services until it is reimbursed.

Park Superintendent Tyler McLead said he is grateful the town recognizes the need for help with the Prairie Duneland Trail.

“That was impossible to handle in house,” McLead said.

In other business, the council held a public hearing for the annexation of 5.3 acres on the north side of Indian Boundary Road across from the Sand Creek Drive North intersection.

Council agreed afterward that they would proceed toward a final agreement on the annexation with ESA Resources LLC.

Jeff Stricker of Chesterton, who formed the ESA Resources LLC, said that he intends to build two townhouses on a large vacant lot between two houses he owns at 1325 and 1405 Indian Boundary Road.

Councilwoman Jennifer Fisher, R-5th, said she was surprised to learn that the property wasn’t already within the town limits. The Sunrise Breakfast & Lunch restaurant directly across the street is within the town boundaries.

Council also held a public hearing and gave a first reading for the 2027 budget ordinance.

Before the regular council meeting, a special meeting was held where Clerk-Treasurer Courtney Udvare presented the proposed 2027 budget to council.

Udvare said there is enough money to finance a 2% wage increase for town employees. She said it’s up to the council about how they would want to handle the issue, as a lump sum could be given instead of a wage increase.

Concerns for the future include that costs will rise faster than revenue, especially with inflationary increases in gasoline and health insurance expenses, Udvare said.

Jim Woods is a freelance reporter for the Post-Tribune.