By Stephen Appezzato
FAIR HAVEN – Facing soaring prices and a burdensome state mandate, borough officials had a tough choice in awarding a trash and recycling contract that would decrease service for the next few years. However, a new development indicates the issue can be sidestepped.
Like many services, the cost of trash and recycling collection has skyrocketed since the borough signed its previous contract with Suburban Disposal five years ago. In its 2024 proposed budget, borough officials anticipated the cost of service would increase by approximately 50% over the current contract which is about $371,000.
But, when the contract was put to bid earlier this year, only one offer came in – far above the anticipated mark.
“We even prepared for this, in seeing that other towns were getting increases on the same types of contracts that they were receiving, as we budgeted for this year into the future,” said Mayor Josh Halpern at the June 11 council meeting.
“We didn’t anticipate that the contract would come in 97% above where it was previously,” he said.
For 2024 the borough budgeted $540,000 for the current contract, which offers trash pickup twice a week in the summer and once a week throughout the rest of the year, weekly recycling pickup and 10 bulk pickups. However, the quoted amount for the coming year came in at $732,750, with only four bulk pickups.
Financially, the borough can afford the 97.56% cost increase, but the issue arises with a state mandate on towns called an appropriations cap, which limits how much borough spending on certain services can increase each year.
“I just want to make sure that the public understands that we’ve tried everything that we can here to keep your service the same, and this is not about us overspending in other places,” Halpern said.
“The borough doesn’t have any issues with capital, capital’s not part of our appropriations cap,” borough administrator Teresa Casagrande added.
Under the mandate, a borough’s appropriations cannot increase more than 3.5% each year unless it is granted an exception, which Fair Haven received for the last two years.
“The state mandates this cap limit and our budget has to be approved by the state every year. It’s not up to us, basically, until we are able to impress upon our legislators that the appropriations cap is not helping, it’s hurting,” said council member Tracy Cole.
The council faced a tough choice, weighing options to reduce collection service to adhere to the appropriations cap, including reducing recycling to bi-weekly pickup, cutting trash pickup to once a week in the summer, and reducing bulk pickup to quarterly.
“Every small town around us is having the exact same situation and the exact same conversations,” Cole said, including Red Bank, Shrewsbury and Little Silver.
Making matters worse, while the borough’s Department of Public Works facility is under renovation, residents would not have a location to drop off cardboard for the next six months. With a July 1 deadline to sign a new waste contract looming, the borough council moved fast to hold information sessions and gauge public input.
However, a recent development indicates Fair Haven residents might retain their level of service for another contract cycle.
After meeting with state officials, the borough council shared in a June 19 special meeting that Fair Haven may receive another exemption to the appropriations cap, meaning the necessary money can be spent on a new trash contract.
Casagrande said the state Division of Local Government Services (DLGS), which will review the exemption, is well aware of the “antiquated law.”
It’s “no surprise to them down there that the towns are struggling,” she said.
While the DLGS reviews the borough’s exemption application, Halpern said Suburban Disposal approved a short-term monthly contract and a 60-day delay in the bidding process, which will allow the DLGS to consider the request.
“It’s been a whirlwind of a week with a lot of moving parts,” Halpern said. “I’m cautiously optimistic that we get the full relief that we’re seeking.” Until the DLGS’s decision is made, residents will retain their current solid waste service.
The borough council is expected to award a new three- or five-year solid waste contract later in the summer. At that time it will be clear if services must be slashed.
The article originally appeared in the June 20 – June 26, 2024 print edition of The Two River Times.
