Salisbury Township residents are expected to realize a savings on their trash-hauling service this year.

The proposed refuse rate would drop from $76.50 at discount ($85 gross) to $65 per quarter, and from $306 to $260 annually, for a yearly savings of $46, Salisbury Township Assistant Manager-Director of Finance Cathy Bonaskiewich told commissioners at the Feb. 26 township meeting workshop.

However, Bonaskiewich warned commissioners the water and sewer fund is being depleted because it is operating in the red.

The township water and sewer rate hasn't been raised for about 16 years. The last increase was in 1999.

It is estimated the water and sewer fund has operated at a $700,000 loss.

"That's a lot of money to be losing," Commissioner Joanne Ackerman said.

"We've been operating at a deficit all these years," Commissioner Robert Martucci, Jr., said of the water and sewer funds.

A consideration of a hike in the water and sewer rate may occur later this year during discussion of the 2016 township budget.

"It certainly will help those funds and hopefully help it to break even," Bonaskiewich said of possible water and sewer rate hikes.

After an approximate 45-minute discussion, township officials indicated the term "discount" for refuse, water and sewer rates might be eliminated while retaining rates now charged.

For this year, the water rate would stay at $4.77 per million gallons, which is now the discounted rate. If not paid within the deadline of 15 days, then the rate would be $5.30 per million gallons, which is now the gross rate. After 30 days, the penalty payment would stay at $6.63.

Bonaskiewich explained use of the term "discount" causes problems with the Casselle software system the township uses.

"Our software is not equipped to do discounts," Salisbury Township Manager Randy Soriano said.

"We have to take the word 'discount' out," Commissioner President James A. Brown said.

"Certainly, the 35 years I've lived here, this is the way it's been," Commissioner Vice President Debra Brinton said.

"Technically, you're not raising the rates. You're eliminating the discount," Commissioner James Seagreaves said.

Commissioners would need to amend the refuse, water and sewer ordinance to make changes in wording and rates.

According to Bonaskiewich, 84 percent of the estimated 5,000 township households pay the quarterly refuse, water and sewer bills to take advantage of the discount rates.

It was reasoned keeping the discount rates the same while eliminating the term "discount" would not penalize the majority of residents.

Bonaskiewich said the collection rate of delinquent township refuse, water and sewer payments is about 93 percent.

"Very few municipalities offer discounts as high as 10 percent," Soriano said.

"Water and sewer are two different funds. We should not put them together," Soriano added.

"You should look at your overall rate structures," Soriano recommended to commissioners.

"You have to amend the ordinance [to increase rates]," Soriano said, adding, "We need more money for water and sewer."

Looking ahead to next year, one scenario could include keeping the water rate at $5.30 per million gallons, with the discount of $4.77 per million gallons eliminated, and keeping the sewer rate at $52.60 annually, with the $47.34 annual discount rate eliminated.

Bonaskiewich estimates the rate increases would add $100,000 annually to the water fund and $76,000 to the sewer fund.

The trash rate savings is the result of a new contract with Republic Services, doing business as Raritan Valley Disposal, which was the approved lower bidder when the township put out requests for bids for trash haulers. The contract with the previous hauler, Waste Management, Inc., concluded Feb. 28.

Commissioners voted 4-0, with one commissioner absent at the Dec. 18, 2014, meeting, to approve a three-year contract with Republic Services.

The contract calls for twice-weekly manual pickup for municipal solid waste and once-weekly pickup for recycling.

Republic's three-year bid is about $993,000 annually, a savings of about $600,000 annually compared to the $1.5 million the township has been paying annually.

Republic was the apparent lowest bidder at $3,041,310 over three years.

Waste Management, Inc., which has been the township trash hauler, was the apparent highest bidder at $4,193,677 over three years.

J.P. Mascaro bid $3,853,080 over three years.

The township's six-year contract with Waste Management, Inc. expired at the end of June 2014. It was a three-year pact, with a one-year renewal for three years. Waste Management was paid $1.5 million annually for each year of the contract.

Waste Management agreed to a month-to-month extension of its township contract through February. Republic's pact began March 1.