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Middletown reports Q1 shortfall; April tax receipts expected to replenish fund balance
Summary
Finance Director Laura Hucklebridge reported that Q1 expenses exceeded revenue (typical for the fiscal cycle), leaving the general fund at 2.4 months of expenses — below the three‑month policy — but April tax receipts (including $1M in earned income tax and $3M in real estate tax) should increase fund balance.
Finance Director Laura Hucklebridge presented the township's Q1 (January–March 2026) financial report, saying consolidated revenue for the quarter was about $8.4 million while expenses were about $10.4 million, a pattern the township expects because major tax receipts post in April. Hucklebridge said the township had received $2,000,000 in earned income tax through the end of March and an additional $1,000,000 in April; real estate transfer and property tax receipts in April added about $3,000,000 to cash flow.
Hucklebridge explained she is recognizing the pension minimum municipal obligation (MMO) monthly this year (annual MMO about $3.7 million, recognized as $308,000 monthly) to better reveal operating trends and avoid a large October spike. She told the board the general fund ended Q1 at 2.4 months of operating expenses — below the township policy of three months — but that April receipts and scheduled transfers are expected to replenish the fund balance. The investment fund (proceeds from the water/sewer sale) had income and a planned $1.3 million transfer to capital for planned purchases later in the year.
"For the first quarter our expenses exceeded our revenue, but that is the way it's been all these years...most of our revenue comes in in April," Hucklebridge said. She concluded by saying stormwater bills were mailed at the end of April and would generate additional revenue going forward.
