DPW Director John Broderick discusses his recommendations for the FY27 trash and sewer rates.
Photo credit: SHCTV15
SOUTH HADLEY — The Selectboard decided at its Feb. 17 meeting to maintain the current curbside collection rate of $250 per household and increase the sewer rate to $525 per household in fiscal year 2027.
The decision was made based on recommendations by DPW Director John Broderick, who joined the meeting to discuss the fees for the upcoming fiscal year.
“We’ve got a healthy fund balance,” he stated.
Broderick said the department has not had a lot of expenses that have taxed the rate in the past three or four years, but that could change after FY27.
After FY27, FY28 and FY29, the DPW will look to replace a pickup truck and either do some major work on its roll-off truck or purchase a new one altogether.
Broderick said he recommended the same trash rate as last year because the truck does not need any major work this year, but the DPW will monitor it going forward.
The fee covers collection and disposal. South Hadley is entering year two of its six-year contract with Republic Services. The town recently adopted a new automated trash removal system, transitioning from manual pickup to carts.
Broderick said there’s a 6% increase for trash next year. The town produces around 3,100 tons of trash every year. This year they are paying $105 a ton, which on average is $325,000 for disposal of household trash.
According to the DPW director, the department anticipates about 1,400 tons of recycling. South Hadley pays $108.50 per ton, which is between $360,000 to $370,000 for disposal.
“And then you got your collection costs, which are around $600,000, which is your household collection, curbside, then it’s your town buildings and schools, and then your yard waste collection for two weeks in the spring, two weeks in the fall,” Broderick explained.
On the collection side for next year, through contract, it’s a $49,000 increase.
As for the FY27 sewer fee, the $525 rate is a $25 increase from FY26.
Broderick said the engineer for the town’s Comprehensive Wastewater Management Plan said that over the course of the next 10 years, the town will need to increase the rates significantly to fund the associated costs anticipated to upgrade the wastewater treatment plant, pumping stations and infrastructure to ensure an operable compliant system for years to come.
The engineering study recommends an anticipated increase of $300 dollars or so over the next 10-20 years to properly fund these improvements.
Broderick explained in his letter to the Selectboard that the construction portion of the wastewater treatment plant phase 1 improvements should be eligible for 0% borrowing for 20 years, and the pumping stations construction portions should be eligible for 2% borrowing for 20 years. He added, though, that the engineering costs for design/bid/oversight of these construction upgrades are not a borrowable amount and must be funded solely by enterprise funds.
This large-scale project is expected to start design phase 1 in fall 2026 and end in spring 2028. Construction is projected to begin in early 2027. A consistent increase in annual fees is expected, according to Broderick. Raising the rate by $10 increases available funds by approximately $87,000.
Broderick explained, “Like we said in the past, it would’ve been nice if it was done in small increments over years, and you would’ve built up a fund balance that would have been sufficient to start the project, but then there would have been increases during the project to continue it through to completion.”
Broderick said the town will need to fund the design portion of the Main Street pump station and the design portion of phase one of the wastewater treatment plant.
