Middletown Looks To Hold The Line On Taxes, But Has ‘Some Concern’ For Future

Middletown’s proposed 2019 budget does not include a tax increase.

The township’s proposed spending plan shows $32 million in general fund expenditures and $5.4 million devoted to capital investments. The largest expenditure at 51 percent is the police department.

Township Manager Stephanie Teoli Kuhls said she has “some concern our contractual obligations will outpace our revenues” in the coming years. She advised that the issue will have to be watched.

Township employees are represented by four unions, which have all negotiated pay increases for their members in 2019. There are 112 full-time employees, 24 part-time employees, and 50 seasonal workers. The 2019 budget proposed moving information technological services from a contracted service to one handled by a new full-time employee. It also proposed moving a full-time community service officer position in the police department to a part-time position.

Middletown is “aggressively” seeking grants to fund programs, Teoli Kuhls said.

The average Middletown homeowner pays $515 of property taxes to the township and also a .5 percent EIT.

Some of the budget goals were to keep the spending plan balanced and invest in capital projects. The capital fund received some money in the past from the earned income tax (EIT) but that is likely not sustainable. Teoli Kuhls said some returns from the township’s $40 million investment fund could be invested in the fund.

The township takes in revenue from the investment fund that was created when the water and sewer system was sold a number of years ago. The balance never falls below $40 million.

Among the township’s capital improvements, Middletown plans to put $1 million toward the ongoing road paving project. Over the past five years of the 15-year plan, the township has resurfaced 61 miles of roadway.

As the real estate market has grown with the economy over the past few years, the township’s real estate tax revenues has increased from less than $1 million several years ago to an expected $1.2 million in 2019, Shapiro said.

Finance Director Brian Shapiro said the EIT is expected to bring in $7 million next year.

Supervisors George Leonhauser and Bill Oettinger have stated they hoped the township would create a position for an additional police officer. Oettinger, the fire marshal in Lower Southampton, said he was disappointed the Middletown Fire Marshal’s Office will not get approval to convert a part-time employee to a full-time one.

Amy Strouse, the chairperson of the Supervisors, said the township should not “just reflexively hire” employees. She said the township should take a pause to look at staffing and determine if more employees should be added down the road. Citing the new duties for the fire marshal’s office, she said there may be a need and there should be time to determine if they need more resources.

Budgeting for the township takes place throughout the year but really kicks into high gear in August, Teoli Kuhls said. She added that this year saw a new budget format with more explanation and more public participation.

The proposed 2019 budget is available for review and will be considered by the Supervisors at their December 3 meeting.