Northborough officials weigh raising pay-as-you-throw bag prices as budget strain grows

Town staff and the Department of Public Works presented data on Feb. 9 showing the town currently generates about $550,000 annually from Pay-As-You-Throw (PAYT) bag sales. Scott Sharpett, the DPW director, told the Select Board the program operates as an enterprise fund but still needs an annual subsidy supplied via the tax levy.

Staff modeled a conservative doubling of the current bag price as a scenario and said actual revenue gains would likely be lower because some residents might switch to private haulers for convenience. Sharpett described hauling as largely a fixed cost (about $800,000) with disposal representing a variable cost (about $300,000), so the board was told losing participants would reduce revenue more than it would reduce fixed hauling costs.

Board members and residents flagged equity concerns. Select Board member Mike Tietjen said raising fees “comes directly out of people’s pockets” and could disproportionately affect families and fixed-income residents. Several public commenters urged modest increases rather than doubling; resident Fran Backstrom suggested small, incremental raises and renewed recycling education.

The board asked staff to return with scenario analyses for a 25% increase, a 30% or 50% increase, and to show bulk-sticker revenue in projections. Staff also noted that the town—ould explore conversions of private-hauler customers and longer-term options such as automated pickup models, but the latter would require a significant capital program (bins cost about $70 each).