Middletown Expects Expenses To Creep Closer To Revenues In 2018

Under its proposed spending plan, Middletown will not add any positions in 2018 to help keep the budget in line.

The township’s preliminary budget keeps the tax rate at 17.570 mills, the same as it was for 2017. The average homeowner can expect to pay $514 in real estate taxes to the township.

The township’s .5 percent earned income tax (EIT) that is imposed on most working residents is expected to bring in $6.9 million, making up the largest revenue source.

Officials said “expenditures are creeping closer to our revenues”and the township is looking to keep expenses in line. To keep expenses in check, the township will hold the line on adding any new positions. In fact, the proposed budget includes reducing the equivalent of 1.5 full-time positions in the finance office. Police and public works requested adding staff, but their requests were turned down in the spending plan.

“Although the General Fund in the proposed budget is balanced, the five-year forecast for this fund illustrates that our contractual costs will outpace anticipated revenues, requiring the use of fund balance to balance the General Fund budget in future years,” Township Manager Stephanie Teoli Kuhls wrote in her budget overview.

In the written presentation, Teoli Kuhls said Middletown “aggressively seeks grant revenue” and has obtained nearly $7 million in the past five years.

In the spending plan for 2018, the township has allocated nearly $5 million for capital projects. According to Teoli Kuhls, the township plans to add six new police vehicles, upgrade two vehicles in the public works fleet, bring a new records management software for the police department, add handicap ramps to intersections, pave more roads and put stormwater and drainage upgrades in place.

Some of the upgrades and capital projects are expected to be covered by grants, Teoli Kuhls said.

The police department spending makes up 51 percent of the budget, which is common for municipalities in Bucks County. With costs factored in, a police officer costs the township $170,000 per a year on average.

The township will maintain their $40 million investment fund balance from the sale of their sewer and water system several years back.

With a new Democratic majority taking over the Board of Supervisors in the new year. The budget could be reopened and changes can be made following a vote.

The current elected officials are expected to vote on the spending plan at their Monday, December 11 meeting that starts at 7:30 p.m. at the Municipal Complex.