45 Million 2026 Tentative Budget Presented - Public Hearing On Increased Water Rates

MIDDLETOWN - The Middletown Council presented its tentative 2026 budget of $4,561,937 at the monthly workshop meeting on Oct. 1. The proposed budget is an increase of $146,595 or 4.07% over 2025, which includes special districts. Taxes amount to $3,426,531 of the proposal.

With the use of unappropriated funds, the budget is in line with the State-mandated tax cap increase, calculated at 2.61% or $86,906. The council has proposed balancing the budget with $60,000 of unappropriated funds to meet a 2.6% increase.

The 2025 budget utilized roughly $47,000 in unappropriated funds to balance the budget and keep it under the tax cap. Supervisor Glen Faulkner said, "It's looking like we don't need all of it (the $47k) this year." Those unused funds will replenish the unappropriated fund.

In addition to the $60k, the council proposed a decrease in the highway department budget of roughly $40,000 to help balance the budget. The reduction was applied to the fuel line items, with an anticipated lower oil cost.

The assessor's budget also decreased by $11,000 after the town decided to switch from a three-member elected board to a single assessor.

All CSC staff are proposed to receive a 5% salary increase, while other administrative staff and board members are slated for a 3% increase.

The public safety budget increased by approximately $10,000 due to the addition of a deputy code enforcement officer position. There is a 15% increase in health insurance costs.

Building expenses are slightly elevated, said Faulkner, due to the need for new windows at the highway garage and other items for the transfer station.

"I feel good about the budget, we went through it line by line a few times," Faulkner said.

"Its a good budget and it's realistic," Bookkeeper Beth Bush noted.

Councilmember Nelson Delameter had concerns about the $85,025 budgeted for ambulance services with Margaretville Hospital. The contract specifies the details of the service to be provided to the town, which Delameter claims are consistently violated. He said the Hospital is short-staffed and is using the county-wide ambulance service, AMR, to meet contract conditions. The county services are meant to supplement the Hospital ambulances, said Delameter.

As the contract is set to lapse at the end of the year, Delameter and Faulkner agreed that negotiations would be held for renewal. The proposed budget is expected to remain at approximately $85,000, pending the outcome of negotiations.

The preliminary budget is expected to be presented on October 8, after press time, at which point it will be available for public viewing. The council is expected to hold a public hearing on the proposed budget in November.

Water Rates

A public hearing was held regarding proposed rate increases for both the Halcottsville and Arkville districts.

The current quarterly rate for Arkville, set at $110, will remain. Non-user fees are proposed at $50 per quarter. The Halcottsville user fees are proposed to increase from $110 quarterly to $125, and non-user fees from $45 to $50. Non-user fees apply to all properties with a structure within a water district that do not use the infrastructure.

The reason for the increase is due to the costs of maintenance for such small districts, explained Faulkner. Both districts recently had major projects, which were challenging to budget for, leading to a municipal loan for Halcottsville, he said. Arkville recently required a $14,000 tank replacement, and Halcottsville totaled around $8,000 in various updates.

"If we are taking taxpayer dollars from other constituents in the town we should also do our due diligence to try to ensure the district becomes sustainable in the future," Faulkner said.

While against non-user fees years prior, Delameter now recognizes the need for them to sustain the budget. He explained that maintenance fees are often the same regardless of whether there are 20 users or 2,000. "I don't think it's going to solve the problem but I think it will contain it," he said, in favor of the increase.

Only one individual spoke during the public hearing, inquiring whether a vacant lot would be exempt from non-user fees. Faulkner said a vacant lot would not be required to pay fees, but those with structures on them have the benefit of being in the district, as there are fire hydrants.

The next regular workshop meeting is scheduled Wednesday, Nov. 5, at 6 p.m.