Middletown Keeps Tax Rate Flat for 2025 Amid Looming Deficit Woes
Good news for residents of Middletown Township: taxes will remain steady in 2025! However, the township is facing a notable challenge ahead, with a projected $2.8 million budget deficit looming on the horizon.
The township council recently approved a robust $45 million budget, passed with a decisive 3-1 vote during a meeting last Monday night. This plan ensures that the tax rate stays at 19.025 mills while allocating $3.5 million for vital capital projects.
Supervisor Dana Kane has raised a red flag regarding the township’s financial future, expressing concern about the impending deficit as we approach 2025.
Township Manager Stephanie Teoli Kuhls highlighted that while past budgets accounted for deficits, 2024 marks the first year they materialized. The trend suggests that 2025 could bring similar fiscal challenges.
Both Kane and Supervisors Chairperson Mike Ksiazek agree: it’s time to tackle this deficit head-on and explore viable solutions.
“Each year, we juggle various factors during the budget process,” Ksiazek stated. “Looking ahead to 2025, we must exercise extreme caution with our spending.”
He praised township staff and department heads for their commitment to tightening their belts and prioritizing essential projects over extravagant wish lists.
“We must seriously evaluate our general fund and the fire protection fund,” said Teoli Kuhls. “Next year will be a crucial time for this review.”
Despite challenges within the general fund, Teoli Kuhls reassured that other township funds are performing adequately.
In their budget discussions, officials outlined that a structural deficit can be addressed through careful spending reviews and potential future increases in real estate taxes.
A staggering 86% of the general fund’s expenditure is directed towards salaries and employee benefits, with the police department absorbing 52% of these costs. Meanwhile, the Earned Income Tax remains the township’s primary revenue stream.
The township has been proactive in securing grant funding, successfully bringing in $2.9 million for 2024, according to Teoli Kuhls.
Plans for the budget include allocating $500,000 for local road improvements; $1.5 million for upgrades to the police parking lot and municipal complex roof; enhancements to the Langhorne-Middletown Fire Company station; and additional security measures at the municipal complex. Other investments will go towards new vehicles for various departments, updated firefighting gear, IT upgrades, and even solar arrays to help reduce energy consumption.
However, residents should prepare for a slight increase in waste and recycling fees as the township enters into a new five-year contract with Waste Management. The fee will rise from $401 to $476 per household.
In addition to the approved budget, a new stormwater fee will be introduced starting in 2025 to fund maintenance and improvements of the stormwater infrastructure. The fee was approved after a thorough discussion and evaluation process by a dedicated committee.
“We’ve been discussing this for years,” noted Teoli Kuhls. “This fee will provide a much-needed capital fund and a consistent funding source that we have long envisioned.”
The fee structure will impose a flat $60 annual charge on residential properties, with commercial and multi-family properties subject to a tiered system based on their impervious surface area.
Credit: Tom Sofield/LevittownNow.com
Nick Valla, the assistant township manager, clarified that apartment buildings fall under commercial properties in accordance with the ordinance, meaning the fees will be assessed at the building level, not the individual units.
Kane raised concerns regarding the $500 monthly cap for commercial properties, particularly those large apartment complexes with significant impervious surfaces. Valla assured that the cap applies per parcel, and many larger properties are divided into multiple parcels, each subject to its own fee.
During the public comment section, residents voiced worries about the implications of ongoing development on stormwater management. Inquiries were made regarding the board’s stance on potentially slowing development in the area.
Township Solicitor James Esposito addressed these concerns, noting the constraints imposed by state law on the board’s ability to restrict development through ordinances.
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