DPW Director John Broderick talks at the Select Board about upcoming trash collection transition and proposed fee increases.
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SOUTH HADLEY — During the March 4 Select Board meeting, Town Administrator Lisa Wong discussed some fiscal year 2026 budget updates including a wastewater and landfill rate hearing.
Wong said that this budget cycle is going to be a tough year for a number of reasons. The FY26 projected operating budget will be just over $58 million, a 3% increase over the FY25 budget of $56.8 million.
Based on an expenses slide in Wong’s presentation, a level service budget will yield a budget deficit of $3.5 million to $4 million, which is about an 8% increase. Most department budgets will aim for a max of 2% growth with most at level spending, which means cutbacks.
Ledges and wastewater accounts are also set to increase by 2% and rising expenses but the state aid production is staying close to the same.
The Select Board hosted a wastewater and landfill rate hearing during the March 4 meeting.
The Department of Public Works staff is recommending a $25 fee increase for landfill and a $50 increase for solid waste.
With the town set to change its collection practices from manual with green bags to automated with wheeled carts on July 1, DPW Director John Broderick talked more about upcoming transition and proposed fees.
Last April, the board adopted a new automated trash removal system to replace the current pay-as-you-throw system and adopted an annual fee for FY25 at $225. They also approved a new six-year contract with Republic Services that will run until June 30, 2030.
Increasing the annual solid waste rate to $225 was to help with the cart purchase and prepare for the expected increased costs while the town worked on purchasing and assembling 13,200 carts.
Broderick said he would be fine with no rate increase for FY26, but explained that an increase would be needed for FY27 to slowly increase the end of the year fund balance and cover contractual obligations with regards to collection and disposal costs.
A recent fund appropriation of $740,000 for cart purchases has reduced the end of the year balance, according to Broderick, but no significant projects are needed in FY26.
The elimination of the green bag program has also eliminated a revenue source as the program was part of the pay-as-you-throw program incentive for residents to pay for what they produced and a per bag revenue source to keep the annual fee lower.
Broderick also explained that without the bag cost, residents are now “limited” to a 65 gallon cart of bagged trash every other week and overflow is either held until the next collection day or can be disposed at the Recycle Center with a sticker, an appointment and/or with an associated convenience and per bag fee.
The green bag annually brought in $350,000 to $400,000 which covered the cost of disposal, according to Broderick.
The current annual wastewater rate is $450, which Broderick called “adequate,” but further explained, “there is a need to start increasing the end of year fund balance as soon as possible in anticipation of 20 to 40 million dollars in upgrades to be required to allow the wastewater treatment plant to service the residents of South Hadley for the next 30 plus years.”
Broderick explained that the town is currently in the process of a comprehensive wastewater management plan assessment which will give South Hadley a thorough understanding of the best way to make upgrades and improvements to the sanitary sewer system, pump stations and wastewater treatment to most effectively collect and process the town’s sanitary sewer needs for the next 20 to 30 years.
The Wastewater Treatment Plant was upgraded around 1980, along with the Main Street pump station. There have been a few significant projects in the past 45 years to keep the system performing appropriately but the majority of the plant and pump stations are experiencing the same issues concurrently and the parts are very difficult to get.
“Processes have improved over the years to become more efficient and costs to maintain the existing infrastructure has proved to be exorbitant,” Broderick stated.
A projection sheet rate increase of $10 per year equates to an end of year fund balance increase of $87,220/$10 increase.
Broderick proposed an increase from the annual fee of $450 a year to $500 a year starting on July 1.
“Simply put, this is a 96-cent increase per week and approximately a 14-cent increase per day for wastewater treatment per equivalent dwelling unit,” Broderick said.
Each single-family household is equal to one equivalent dwelling unit.
The Select Board will be voting on both proposed fee increases at its next meeting on Tuesday, March 18.
South Hadley did host a community input meeting on March 1 about the FY26 projected budget and Wong said, “We do want to hear from folks. We’re very interested to hear your questions, your concerns, your suggestions.”
Budget documents can be found at southhadley.org.
