SOUTH HADLEY — The Select Board is contemplating raising fees for trash and recycling over the next two fiscal years, a decision that if approved would come on the heels of a $100 increase this fiscal year to fund implementation costs for a new automated, cart-based trash system.

The town is proposing raising the rates from $225 in the current fiscal year to $250 in fiscal 2026, then to $265 in fiscal 2027.

Additionally, the board is considering a separate request to increase wastewater rates for both South Hadley and Granby next fiscal year to cover impending expensive capital projects. Under the plan, property owners would see an increase from the current $450 a year to $500 a year in fiscal 2026, then $550 in fiscal 2027.

The changes to the both fees drew considerable discussion at the board’s Tuesday meeting.

Town Administrator Lisa Wong told the board that the $100 increase in trash fees in the current fiscal year raised $750,000 to buy a 95-gallon recycling cart and a 65-gallon trash cart for every household. The fee did not raise enough money to also cover the cost of the more expensive automated trash and recycling contract the town signed with Republic.

“The idea was to increase the fees a year early to cover the (cart) costs, but also to help bridge that gaps so the fee increase wouldn’t be as much when we actually had to pay for the new contract,” Wong said.

As for wastewater fees, Wong said that the proposed $50 increase for fiscal 2026 will help the town prepare for high-cost renovations to its system, while at the same time maintain a $1.5 million surplus in the wastewater account. She predicts the town will need to raise rates an additional $50 in fiscal 2027 to cover future projects, such as an estimated $10 million update to the Main Street Pump Station.

Each $50 increase for residents equates to $300,000 raised for wastewater projects.

“We have a lot of projects that cost six figures, and the question is how soon do we need to raise that money?” Wong said. “Do we want to raise that money earlier so we have built up funds in the bank for big projects.”

Select Board members expressed confusion and concern over the uptick in rates, with a couple members recalling conversations about eventually lowering rates rather than continuing to increase them.

“I thought when we had the hearing about increasing to the $225 (trash fees) to cover the capital, we had discussed that that rate was gong to go back down some,” Select Board Chair Andrea Miles said. “I’m deeply troubled by this.”

Wong said she had no memory of conversations around bringing the rate down, only stalling the rate increases a year for residents and using another source of funding for the carts.

The Select Board will hold a public hearing regarding the rate increased during its March 4 meeting, and then vote on the topic on March 18.

Emilee Klein can be reached at eklein@gazettenet.com.