Proposed Town Budget Would Increase Taxes 1.56 Percent

Middletown Town Administrator Shawn Brown presented council with a proposed $65,332,395 budget Monday night at the first of several budget discussions that are scheduled until May. The budget, up one percent over the current fiscal year, would translate into a 1.56 tax rate increase, or an average of $70 for each residential tax bill. The commercial tax rate would also go up 1.56 percent, adding approximately $180 to the average tax bill.  The motor vehicle tax would remain constant under the proposal.

Brown said the town could not expect revenue growth from other local sources due to the slow recovery of the weak economy. 

Budget Summary

Funding for Schools

The appropriation to the school department is proposed at $23,949,002, up two percent over last year, but $456,668 less than the amount requested by the school committee.

Personnel

Personnel expenses are expected to rise 5 percent in fiscal year 2014.  This increase includes a one-time payment of $153,914 in State Incentive Aid to be invested in the town’s private pension plan and $42,000 into the OPEB trust fund. Personnel costs include salary increases, an increase in the town’s pension annual contribution as a result of poor investment returns and a 10 percent increase in health insurance rates.

The school department’s personnel costs are projected to increase by 3 percent over the current fiscal year, due to salary increases, increases to the state pension contributions and a 10 percent increase in health insurance rates.  

Operating Expenses

Operating expenses are projected to decrease 6 percent over the current fiscal year, primarily due to a one-time professional services that were included in the 2013 budget. The school department’s operating expenses are projected to drop 4 percent.

Non-Profit Agency Support

Civic support is expected to remain at the current level of $101,913

Capital Projects

Capital expenses are projected at $2,113,140, approximately the same level as the current fiscal year.  Projects included in the budget are guardrail improvements, vehicle replacement, technology infrastructure and upgrades to Forest Avenue.

The schools department's capital projects are budgeted at $686,733.  Projects include paving, door/lock replacement, floor/ceiling repairs, structural repairs and a bleacher replacement at Middletown High School, Gaudet School and Forest Avenue School.  RIDE will provide the town a 40 percent reimbursement upon the project’s completion.

Debt

Debt related expenditures are expected to go up 6 percent, as a result of the need to take a bond out to fund the redesign of the Esplanade project.