Middletown adopts 3.2% budget, approves local matches for sidewalk and safety grants

The Town of Middletown council adopted the fiscal 2027 budget on second reading after a public hearing that drew several hours of resident comments about taxes and services. The council approved a consolidated levy increase that staff said equates to a 3.2% increase in the proposed tax rates and approved motions to recognize federal and state grant awards that carry local matching obligations.

The budget as adopted carries an increase of about $2,137,227 over the prior year, with the school appropriation accounting for the largest share. Staff told the council the school committee requested a 4% increase (presented as $1,316,180). Council members and staff walked residents through illustrative per-household impacts used in the presentation: for an average owner-occupied property the administration showed a combined illustrative increase of $268 when adding general fund, sewer, refuse and beach fees.

Staff also outlined project-specific grant actions the council approved. A staff member identified in the meeting as Sean said the town has secured $2.43 million in federal/state funding for the Purgatory Road sidewalk project but that engineering estimates put the project at roughly $3.05 million, leaving an estimated local gap of approximately $774,000 (including a recommended 5% construction contingency). Sean said the administration recommends using parks/CIP preservation funds to cover the local share so the project can proceed to bid. He also reported the town is expected to receive a $5.69 million Safe Streets and Roads for All (SS4A) award that would require a local match estimated at about $1.42 million; the administration moved to recognize that grant and reflect the expected match obligation in the adopted budget now rather than wait until contracts are executed.

Sewer and service fees were among the line items highlighted. Staff reported a proposed sewer maintenance fee increase (about $25 per 1,000 gallons, roughly an 11% change) and projected the average single-family sewer charge would rise to about $960 annually; staff attributed much of the change to contractual costs charged by the City of Newport, including anticipated clarifier contract obligations. The council also approved a $5 increase to the pay-as-you-throw refuse permit fee (from $185 to $190) and a $25 fee for a second refuse barrel. Parks and recreation fees were raised in several categories, including a resident beach/park season fee increase from $90 to $100; the council set the ordinance effective date for those fee changes as July 1, 2026.

Public comment focused heavily on affordability and alternatives. Resident Terry Flynn asked whether the administration had produced a services-cut exercise tied to the different levy scenarios; staff provided the dollar reductions needed to reach lower increase targets (for example, staff said cutting the budget to reach a 2% levy instead of the proposed 3.2% would require roughly $887,660 in reductions). Resident John Galliano urged greater transparency about legal spending and said he had filed a public-records request; he said the town’s response would have required him to pay $360 and asked the council to waive the fee so taxpayers could see how solicitor funds were spent.

Councilors debated a range of options to lower the rate, with some urging line-by-line small reductions and others warning that drawing down CIP or other one-time capital reserves to cover recurring operating needs would create a structural deficit. Council discussion also touched on succession and staffing matters, including a proposed deputy town administrator position and a school request to use $52,500 in fund balance contingent on school-committee approval.

Votes at a glance - Motion: Charge holiday beach rates for the observed holiday (July 3) — approved (voice vote). - Motion: Amend fire department organization to reflect SAFER-grant staffing (add positions as described) — approved (voice vote). - Motion: Allow school department use of $52,500 in fund balance contingent on school committee approval (to fund an IT director position) — approved (voice vote). - Motion: Reprioritize CIP items and reduce capital lines to set aside local match for SS4A and related projects — approved (voice vote). - Motion: Increase community outreach funding by $50,000 for Florence Gray Center director — approved (voice vote). - Motion: Recognize federal grants for lower Aquidnik/Aquidnik-area paving and related purgatory sidewalk local match and adjust parks/CIP funding accordingly — approved (voice vote). - Ordinance (second reading): FY2027 consolidated budget and levy ordinance — adopted on second reading (voice vote). - Ordinance (second reading): Refuse and recycling fee schedule (increase $5) — adopted (effective July 1, 2026 for budget-year fees). - Ordinance (second reading): Parks and recreation fee schedule (including a $10 resident beach-pass increase) — adopted (effective July 1, 2026).

According to roll call at the start of the meeting, seven council members were present; votes on the motions and ordinances were taken by voice and recorded as approved. Council President Paul M. Rogers closed the public hearing and the council moved to adopt the ordinance as amended.

What happens next - The fee changes adopted for parks/beach and refuse will take effect July 1, 2026, per the amended ordinance language. - Staff said the administration will continue final design and procurement steps for the Purgatory Road sidewalk and will return to council with contract awards and more detailed implementation dates as bids and agreements are finalized. - The SS4A match schedule, cash-flow timing and final grant agreement remain subject to further clarification; the council recognized the likely local match obligation now to ensure budget transparency.

Sources and attributions Reporting is based on staff presentations and council debate during the public hearing. Direct quotations and speaker attributions in this report are drawn from the public record presented at the hearing; quotes come from speakers appearing in the meeting’s official transcript and are attributed to council members, named residents, or town staff as shown in the transcript.