For Immediate Release – May 3, 2021
MIDDLETOWN, NJ – The Middletown Township Committee introduced its $84.4 million budget with a zero percent municipal tax rate increase at the Monday, May 3rd Township Committee Workshop Meeting.
The proposed 2021 municipal budget represents an ongoing commitment to minimizing costs while maximizing tax dollars and services. Despite a loss in revenue due to the ongoing COVID-19 pandemic, the municipal tax levy is less in total dollars than in 2020.
“The Township Committee and Administration collaborated to find creative ways to reduce our overall expenses through streamlining efficiencies, shared services, and pursuing grant opportunities,” said Mayor Tony Perry.
Through the American Rescue Plan Act of 2021, Middletown was allocated $3 million to be used over the next year to mitigate the impact of the pandemic. “Once it is clear what exactly the stimulus package can be used for, we will make strategic decisions about how to best utilize the relief funds,” said Deputy Mayor Rick Hibell.
2021 Key Budget Facts:
- The Township continues to realize savings through a variety of revenue-enhancing shared service agreements with other municipalities (including Fair Haven, Hazlet, Highlands and Holmdel), the Middletown Board of Education, and Monmouth County. The Township also has a shared service with the County for Community Development Block Grant management that enables the Township to continue its very successful housing rehabilitation program at reduced costs;
- Healthy reserves have permitted the Township to reduce the budget lines for insurance by over $1 million;
- Storm response increased $970,000 due to an increase in winter storms in 2021, coupled with reduced reserves due to the COVID-19 pandemic;
- Retirement costs increased by approximately $630,000 – this is a direct result of the State of New Jersey reducing the projected return on investment and increased retirement expenses;
- Contractual police salary increases of approximately $465,000;
- The 2021 proposed municipal budget is well below the state-mandated levy cap ($2,732,822) and remains in full conformance with the state appropriation and levy cap laws;
- The Township budget makes up approximately 23% of the average property tax bill. The remaining portion primarily relates to the school (62%) and County tax levies (12%);
- On average, Middletown Township’s annual tax levy increases have been minimal and among the lowest in Monmouth County over the last decade.
To review the 2021 municipal budget introduction presentation, visit www.middletownnj.org/budget2021.
###