Conforms With 2% Cap Levy Law Absent Needed Tool Kit Reforms

– The Middletown Township Committee anticipates introducing its 2011 municipal budget that is $3.87 million (5.9%) less than the Township’s 2010 budget.

“Middletown’s proposed municipal budget is very austere and in full conformance with the new 2% cap levy law despite the Legislature’s continued failure to enact the Governor’s tool kit reforms that would empower the Township to make further cuts,” said Middletown Mayor Tony Fiore. “We are hopeful to continue to rein in spending through ongoing negotiations with the Township’s collective bargaining units with a focus on decreasing the Township’s health care costs.”

“Cuts in the proposed budget include the layoffs of 26 employees, including 10 police officers, and the third consecutive year of salary freezes for the Township’s managerial employees,” continued Fiore. “Middletown will continue to focus on core governmental functions while seeking other ways to continue to reduce costs though interlocal agreements and the Township’s solar initiative that is currently under way.”

Proposed Budget Data and Facts

  • ·The proposed 2011 municipal budget is $61,114,285 compared to the adopted 2010 budget that was $64,979,576.
  • ·The proposed budget represents an actual decrease in spending of $3,865,291 (5.9%) from the 2010 budget.
  • ·The largest cost drivers offsetting the Township’s $3.87 million in budget cuts are tax appeal refunds, State-mandated pension contribution increases of 22%, and costs associated with deferred charges due to numerous retirements last year.
  • ·The proposed 2011 budget anticipates an increase in the total tax levy of $1,357,855 which complies with the new 2% cap levy law and will cost the average homeowner approximately $5 per month.
  • ·The municipal budget makes up only approximately 22% of the average property tax bill, the remaining portion relates to the school and county tax levies.