MECHANIC FALLS — The Town Council agreed Monday that the town ought to look seriously at a “pay as you throw” system for solid waste disposal.

Kathryn Oak, manager of the transfer station, told councilors a “pay-per-bag” method could save property taxpayers over $90,000 a year.

“I think it is a great idea,” Councilor Lou Annance said.

“Worthwhile looking into,” Councilor Nancy Richard said.

Oak said such a program likely would improve the town’s recycling rate, generating more income from recyclables while reducing Mid-Maine Waste Action Corp. tipping fees at Auburn.

“And it’s more equitable,” Oak said. “People using the transfer station would be paying for it.”

Oak noted that people who pay for private trash pickup or who haul their trash to MMWAC are, through their property taxes, paying for a service they are not using.

Public input and education would be critical, according to Oak, and there are issues to iron out such as the pay-per-bag’s effect on low-income families and the possibility that it might increase illegal dumping.

“Other towns that have adopted ‘pay-as-you-throw’ systems haven’t seen an increase, but it might be a good idea to have a local litter ordinance,” Oak suggested.

Town Manager John Hawley said the Budget Committee was adamant the council find ways to reduced costs to property taxpayers.

“This is a fairer system,” Hawley said. “It would bring closer a goal to make our transfer station self-sufficient.”

The $90,000 such a program could generate, Hawley said, equals about three-quarters of a mill on the tax rate.

The council agreed to discuss the merits of a pay-per-bag system at its August meeting, with an eye to holding a public hearing on it in September.

In other business, the council awarded the three-year contract for engineering services for the transfer station to CES of Lewiston, accepting its bid of $24,600.

CES’s bid was the lowest of three received and, Hawley noted, is considerably lower than the $14,000 per year contract the town currently has, due in part a reduction in the scope of services it expects.

The council also awarded the contract for hauling commodities from the transfer station to Corcoran Environmental Services, headquartered in Mechanic Falls, at a net cost estimated at $3,791 a year.

Corcoran Environmental Services’ bid was not the lowest, but Oak said she hadn’t been entirely satisfied with services provided by Almighty Waste of Auburn in the past and the council figured that doing business with a local firm was worth the $1,600 difference in their bids.

The council also authorized Hawley to contract with Keenan Auction to sell the property at 32 Pine St. for a minimum $20,000 bid, provided that amount covers property taxes due and all other costs to the town to date, plus handling charges by Keenan Auction.

Hawley also announced Les Johnson has been hired as code enforcement officer and Connie Cushing Sefcik as librarian.