Middletown proposes 2025 budget with $58 million in fund balance and growing structural deficit

Middletown Township officials presented the proposed 2025 budget and authorized advertisement of the spending plan for public inspection and comment.

Finance staff said the township enters 2025 with more than $58 million in fund balance across funds but faces a structural general-fund deficit. The presentation described a structural deficit of about $1.5 million in 2024 that is expected to grow to approximately $2.8 million by the end of 2025; the proposed budget uses roughly $2.8 million from fund balance to balance the general fund in the coming year. The township proposed holding the real-estate tax millage steady at 19.025, which staff said equates to roughly $560 in local real-estate tax for the average resident.

Key budget highlights included: filling vacant positions and adding one police officer, funding a full-time fire chief position, continuing a mission-critical capital program (about $3.5 million proposed in the capital fund), and continuing aggressive grant-seeking (the township reported receiving more than $15 million in grants since 2011 and $2.9 million in 2024). The presentation also noted that earned-income tax and amusement-tax revenues are important revenue sources and that the pension and personnel costs continue to drive general-fund expenditures.

Board members and staff emphasized that the budget presentation authorizes a public-inspection period and does not represent final board adoption; state law requires at least 20 days between advertisement and a final vote. The board voted to authorize advertisement of the 2025 budget.

What’s next: the budget will be posted for public inspection; staff will return for a final adoption vote after the public-inspection period and any hearings.