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Middletown council adopts 2025 budget amid rising pension and health costs
Summary
Mayor presented the proposed 2025 budget showing operations rising from about $7.4M to $8.2M, citing pension (+8.8%) and health-insurance (+18.81%) increases and adding ambulance costs into the operating budget; the Common Council adopted the 2025 budget by roll call.
The Middletown Common Council adopted the city's 2025 budget following a presentation by the mayor that highlighted rising personnel and benefit costs and changes to how ambulance service is funded.
Mayor DeStefano said the operations budget increased from about $7.4 million to roughly $8.2 million, driven by higher pension obligations (an 8.8% increase) and an 18.81% rise in health-insurance costs. The mayor said the city has 220 full-time employees and has negotiated with at least one union an alternative health plan to mitigate cost increases. He also said ambulance costs—previously covered in part with federal ARPA funds—were folded into the operating budget and increased from approximately $680,000 last year to about $722,000 in 2025.
The mayor outlined revenue offsets, including sales-tax gains and potential grant applications. He said the city will seek a $60,000 contract with WSP to prepare a RAISE grant application that could support sidewalk replacement if awarded; the RAISE grant would require a 20% local match and could potentially enable multi-year bonding of roughly $5 million if pursued.
Council members thanked department heads for budget work and, after discussion, conducted a roll-call vote to adopt the 2025 budget. The roll-call recorded a majority of 'Aye' votes and the resolution carried. The council also approved intra-departmental transfers (fire overtime) and adopted other routine budget-related resolutions as part of new business.
Next steps: The city will proceed with application work for discretionary grants (RAISE and county transportation programs) and implement budget-authorized spending. The council did not change the city's tax-cap status and said it remains within the state-mandated limit.
