MILFORD – Town Council heard a recommendation Monday for a water rate increase of about $6 to $10.50 a month in order to keep up with planned expenses. John Julien, with Umbaugh and Associates, presented the accounting firm’s study on Milford’s water system, which projects yearly costs of $156,000 – about $9,300 higher than what the town currently can pay. Extra income is needed for the town to build up cash reserves in the operating expenses fund and save up for depreciation and maintenance costs, Julien said. The firm based the projections and its recommendations on about three years of water department data. Julien presented three potential rate increases which would generate between $209,000 and $258,000 a year. Even with the highest potential increase, Julien noted, Milford’s water rate would still be cheaper than many surrounding towns of comparable size. “So I’m not going to move to Walkerton after all,” quipped council President Bob Cockburn. He also remarked that he’s concerned with rates as a taxpayer and water customer himself, but doesn’t want to wake up one day and see a sign saying not to use town water because the system broke down. Council agreed to start the process as early as next month for potentially raising rates, after Umbaugh sends an updated report and options for a phased-in increase. A public hearing also will be set to gather input from water customers. Also Monday, council signed a $35,000 yearly contract with Kosciusko County Ambulance Service LLC, the new agency created by Kosciusko Community Hospital’s purchase of Multi-Township EMS. The three-year contract is $15,000 lower than the town’s current fee. Ambulance service won’t change in any way, council heard, but councilmen expressed uncertainty over what will happen after the contract expires. “KCH would provide service as we currently know it for the three-year contract. That’s what we know,” councilman Doug Ruch told the other members. “What we don’t know is, what could happen after three years.” In other business Monday, council: • Voted to allow the police department to keep a 2008 Ford Crown Victoria in good shape with less than 100,000 miles, mainly for use by the new police reserve officers. • Approved a $5,808 bid from Super Seal to repave four parking lots in town and the $4,392 purchase of a water testing machine, both at the request of Utilities Superintendent Randy Veach. The testing machine will provide an average cost per test of $1, Veach said, compared to about $46 per test the town currently pays. • Heard a request from Veach that residents with alleyways beside their homes keep the alleys clear of bushes and other things that obstruct garbage trucks coming through.