2025-14 An Ordinance in amendment to the ordinances of the Town of Middletown General Fund, Parks and Recreation Fund, Sewer Fund, Refuse and Recycling Fund, Appropriating revenues for the Fiscal Year July 1, 2025 to June 30, 2026.

Fiscal Year 2026 Operating Budget Ordinance

Be it ordained by the Town Council of the Town of Middletown, Rhode Island, that the following anticipated revenues and expenses by fund and function, are hereby appropriated and approved for the operation of Town Government and its activities for the Fiscal Year beginning July 1, 2025, and ending June 30, 2026.

Section 1. General Fund
A. Use of Unrestricted Fund Balance
AB. Capital Improvement Program
BC. Appropriation to School Department
CD. General Fund Civic Appropriation
DE. Police Department organization
EF. Fire Department organization
FG. Full funding of Pension and OPEB
GH. Atlantic Beach District TIF Report
HI. American Rescue Plan Act Spending Plan
IJ. Middletown Prevention Coalition

Section 2. Parks and Recreation Fund
A. Beach Parking Holidays

Section 3. Sewer Fund
A. Sewer Maintenance/Newport Customer Service charges

Section 4. Refuse and Recycling Fund
A. Pay As You Throw (PAYT) Bag fees/Annual Permit fee

Section 1. General Fund: Approve Fiscal Year 2026 General Fund Budget as follows:

AUTHORIZED EXPENDITURES
Town Administrator $ 572,681
Finance/HR 1,334,064
Tax Assessment / Collections 334,840
Town Clerk 581,950
Information Technology 1,103,408
Support Services 544,924
Town Council 77,849
Town Solicitor 232,885
Boards & Committees 37,790
Building 496,020
Planning 334,716
Police 8,123,157
Fire 6,264,634
Public Works 3,196,717
Library —1,076,308 —1,191,918¹
Senior Center 385,687

Fiscal Year 2026 Operating Budget Ordinance

AUTHORIZED EXPENDITURES (cont’d)

Community Services Grants 214,740

Debt Service 11,809,570
Non-Department Specific —6,683,995 6,550,385¹⁸³
Capital Improvements
Information Technologies 103,000
Police 252,508
Fire 1,743,000
Public Works 1,425,850
Senior Center 38,260
School Department 300,000

Education —45,279,270 45,979,270²

Total General Fund Expenditures —93,331,940 94,041,317

ANTICIPATED REVENUES

Taxes Levied by Municipality $-58,985,322 58,683,515¹⁸ⴄ
Penalties 110,000
Investment Income 380,500
Other Revenue from Local Sources 129,045
Restricted Grants-in-Aid State Sources 676,173
Restricted Grants-in-Aid Federal Govt. 280,996
Funds Transfer In —5,788,061 5,792,333³
Proceeds from Disposal of Real/Personal Property 1,000
Proceeds/Loan-Other Financing Sources 3,400,000
Proceeds from Capital Leases 2,075,000
Revenue from Claims & Settlements 55,158
Licenses 152,900
Permits 1,134,790
Fines & Other Fees 728,600
User & Program Fees 1,376,593
Intra Governmental Support 5,

Fiscal Year 2026 Operating Budget Ordinance

Section 1AB. Capital Improvement Program

To approve the FY2026 through 2030 Capital Improvement Plan, in accordance with Town Ordinance Chapter 35 Capital Improvements.

To appropriate revenues from the General Fund to the Capital Improvement Program Special Revenue Fund in the amount of $2,384,910; and

That the following restricted appropriations shall be made from the Capital Improvement Special Revenue Fund for the projects specified in the approved Capital Improvement Plan:

1. General Fund
a. Information Services $1,892,935
b. Support Services 127,000
c. Public Works 80,000
d. Senior Center 38,260
e. Debt Service Payments 847,675

2. School Department $300,000 400,000

Section 1BC. Appropriation to School Department:

Unrestricted Appropriation: FY26 Amount
Fiscal Year 2025 Amount 31,638,937
4% Increase 1,265,557
Total Unrestricted Appropriation 32,904,494

Other Appropriations:
Deficit Reduction Plan-Local Portion 700,000
Deficit Reduction Plan-ARPA Portion 200,000
Shared Services 240,000
Total Other Appropriations: 1,140,000

Total Town Appropriation 34,044,494

Provided that the ‘Total Other Appropriations’ are subject to the requirement, as agreed to by the School Committee, that all School Department expenditures will continue to require the approval of the Town Treasurer for the 2025-2026 fiscal year, the purpose of said approval being to ensure that there will not be an excess of expenditures, encumbrances, and accruals over revenues.

Section 1CD. General Fund Civic Appropriations: Approve Civic Appropriations from the General Fund in the amount of $282

Fiscal Year 2026 Operating Budget Ordinance

Section 1DE. Police Department organization: In accordance with the Town Council’s authority under Town Charter §701, and to remain within the parameters of the approved FY2026 budget appropriation, the Police Department shall be comprised of up to and not more than, 49 full-time employees and 2 part-time employees, to include: 1 Police Chief; 1 Deputy Chief; up to, but not more than, 1 Captain; up to, but not more than, 6 Lieutenants; up to, but not more than, 4 Sergeants; up to, but not more than, 5 Detectives; up to, but not more than, 27 Patrol Officers; up to, but not more than, 1 civilian Animal Control Officer; up to, but not more than, 1 civilian Records Clerk; up to, but not more than, 1 civilian Mechanic; up to, but not more than, 1 civilian Administrative Assistant; up to, but not more than, 1 part-time civilian VIN Inspection Clerk; up to, but not more than, 1 part-time civilian Harbormaster; up to, but not more than, and employ civilians on special assignment to include non-permanent officers, community service officers, and public safety interns.

Offices, Grades/Divisions	Administration	Animal Control	Detective	Patrol	Harbormaster
Chief	1
Deputy Chief	1
Captain	1
Lieutenant	2		1	3
Sergeant			1	3
Detective			5
Patrol	3			24
Civilian	4 (3 FT, 1 PT)	1			1 (PT)

Section 1EF. Fire Department organization: In accordance with the Town Council’s authority under Town Charter §702, and to remain within the parameters of the approved FY2026 budget appropriation, the Fire Department shall be comprised of

Fiscal Year 2026 Operating Budget Ordinance

Section 1GH. Atlantic Beach District Tax Increment Financing Annual Reporting (cont’d):
Total increase/(decrease) property values compared to base year: $87,336,691
Tax revenues generated from proposed tax rate from increase/(decrease) in property values from base year: $490,890
Amount set aside for use in proposed budget for use in the Atlantic Beach District: $0

Section 1Hi. American Rescue Plan Act (ARPA) Fiscal Year (FY) 2026 Spending Plan (ARPA Dollars Only):
Berkeley Avenue and Green End Avenue Drainage Improvements: $150,850
Department of Community Outreach FY 2026 Allocation: $131,708
Deficit Reduction Plan to School Department FY 2026 Allocation: $200,000

Section 1U. Funding of Middletown Prevention Coalition for Fiscal Year 2026:
The Middletown Prevention Coalition has submitted a grant application that includes continued funding for a full-time coordinator, with the Town expecting to receive the award by the end of September 2025. In the fiscal year 2026 budget, the town has appropriated non-tax revenue to support the operations for three months. If the Town does not receive the grant, the programs will need to be adjusted to reflect the appropriation approved by the Town Council. This adjustment will ensure that the coalition’s operations remain aligned with available funding while still meeting the community's needs.

Section 2. Parks and Recreation Fund: Approve the Fiscal Year 2026 Parks and Recreation Fund as follows:

AUTHORIZED EXPENSES
- Beach Operations $1,326,242 - 1,321,970³
- Lifeguards 586,786
- Harbor Master 46,841
- Security 151,699
- Parks & Grounds 182,812
- Campground 65,660
- Non-Department Specific 732,2

Fiscal Year 2026 Operating Budget Ordinance

Section 3. Sewer fund: Approve the Fiscal Year 2026 Sewer Fund budget as follows:

AUTHORIZED EXPENSES
- Sewer Maintenance Operations $ 6,909,622
- Debt Service $ 975,895
- Debt Service-Grants $ 44,500
Total Sewer Fund Expenses $ 7,930,017

ANTICIPATED REVENUES
- Sewer Maintenance/Construction $ 7,051,777
- Penalties $ 11,250
- Investment Income $ 69,500
- Other Revenue from Local Sources $ 2,990
- Restricted Income-Grants $ 44,500
- Use of Fund Balance $ 750,000
Total Sewer Fund Revenues $ 7,930,017

Section 3A. Sewer Maintenance/Newport Customer Service charges:
1. Collect a Sewer Rate of $19.39 per 1,000 gallons for all connected sewer users.
2. Collect a Newport Customer Service Charge of $44.93 per meter from all connected sewer users.

Section 4. Refuse and Recycling Fund: Approve the Fiscal Year 2026 Refuse and Recycling Fund Budget as follows:

AUTHORIZED EXPENSES
- Refuse & Recycling Operations $ 301,232
- Pay-As-You-Throw (PAYT) $ 1,122,505
- Non-Department Specific $ 5,102
Total Refuse & Recycling Fund Expenses $ 1,428,839

ANTICIPATED REVENUES
- Investment Income $ 18,600
- Other Revenue from Local Sources $ 8,760
- Permits $ 875,725
- User & Program Fees $ 478,550
- Budgeted Use of Fund Balance $ 47,20

Fiscal Year 2026 Operating Budget Ordinance

1Amended by Council, May 28, 2025
2Amended by Council, May 28, 2025
3Amended by Council, May 28, 2025
4Amended by Council, May 28, 2025
5Amended by Council, May 28, 2025

May 28, 2025
READ AND ADOPTED IN COUNCIL, AS AMENDED

Wendy J.W. Marshall, MMC
Town Clerk

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