2026-3 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, 2026 to June 30, 2027.

Fiscal Year 2027 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, 2026, and ending June 30, 2027.

Section 1. General Fund
A. Use of Unrestricted Fund Balance
B. Capital Improvement Program
C. Appropriation to School Department
D. General Fund Civic Appropriation
E. Police Department organization
F. Fire Department organization
G. Full funding of Pension and OPEB
H. Atlantic Beach District TIF Report
I. American Rescue Plan Act Spending Plan

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 2027 General Fund Budget as follows:

AUTHORIZED EXPENDITURES
Town Administrator 750,901
Finance/ HR 1,433,028
Tax Assessment / Collections 338,891
Town Clerk 559,208
Information Technology 1,112,306
Support Services 543,242
Town Council 77,386
Town Solicitor 232,885
Boards & Committees 151,096
Building 518,876
Planning 341,531
Police 8,681,703
Fire 6,463,175
Public Works 4,165,963
Library 1,393,424
Senior Center 465,817 415,817¹
Middletown Prevention Coalition 35,5

AUTHORIZED EXPENDITURES (cont'd)

Community Services Grants 327,100

Debt Service 13,431,337
Non-Department Specific 7,188,279
Capital Improvements

Information Technologies 245,096 199,000 *
Support Services 185,651
Police 225,293
Fire 175,000
Public Works 1,222,096 1,127,000 *
Library 103,195 59,105 *
Education 47,975,125 48,027,826 *

Total General Fund Expenditures 99,538,972 101,816,472

ANTICIPATED REVENUES

Taxes Levied by Municipality 60,819,927 60,869,927 *
Penalties 120,000
Investment Income 380,500
Other Revenue from Local Sources 137,950
Restricted Grants-in-Aid State Sources 629,222
Restricted Grants-in-Aid Federal Govt. 846,631 3,316,631 *
Funds Transfer In 6,723,023 6,313,023 *
Proceeds from Disposal of Real/Personal Property 1,000
Proceeds from Capital Leases 1,222,096 1,177,000 *
Revenue from Claims & Settlements 62,035
Licenses 152,900
Permits 1,234,790
Fines & Other Fees 836,600
User & Program Fees 1,495,944
Intra Governmental Support 6,444,966
Revenues – Other 35,768
School Department

Fiscal Year 2027 Operating Budget Ordinance

Section 1B. Capital Improvement Program

To approve the FY2027 through 2031 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 $3,284,910; and for only fiscal year 2027 the proposed percentage increase shall not be reflected in the increased annual appropriation.

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 $2,889,522
b. Support Services $241,000
c. Public Works $185,651
d. Library $1,550,000
e. Senior Center $81,000
f. Debt Service Payments $781,871

2. School Department
$515,476

Section 1C. Appropriation to School Department:

Unrestricted Appropriation: Amount
Fiscal Year 2026 Amount 32,904,494
4% Increase 1,316,180
Total Unrestricted Appropriation FY27 34,220,674

Other Appropriations:
Deficit Reduction Plan-Local Portion 900,000
Deficit Reduction Plan-ARPA Portion —
Total Other Appropriations: 900,000

Total FY27 Town Appropriation 35,120,674

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 2026-2027 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 1D. General Fund Civic Appropriations: Approve Civ

Fiscal Year 2027 Operating Budget Ordinance

Section 1E. Police Department organization: In accordance with the Town Council’s authority under Town Charter §701, and to remain within the parameters of the approved FY2027 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, 6 Sergeants; up to, but not more than, 5 Detectives; up to, but not more than, 26 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; 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		1	4
Detective			5
Patrol	3			23
Civilian	4 (3 FT, 1 PT)	1			1 (PT)

Section 1F. Fire Department organization: In accordance with the Town Council’s authority under Town Charter §702, and to remain within the parameters of the approved FY2027 budget appropriation, the Fire Department shall be comprised of up to, but no more

Fiscal Year 2027 Operating Budget Ordinance

Section 1H. Atlantic Beach District Tax Increment Financing Annual Reporting (cont'd):
Total increase/(decrease) property values compared to base year: $86,279,600
Tax revenues generated from proposed tax rate from increase/(decrease) in property values from base year: $641,260
Amount set aside for use in proposed budget for use in the Atlantic Beach District: $0

Section 1I. American Rescue Plan Act (ARPA) Fiscal Year (FY) 2027 Spending Plan (ARPA Dollars Only):
Department of Community Outreach FY 2027 Allocation to be spent prior to December 31, 2026: $30,000

Section 2. Parks and Recreation Fund: Approve the Fiscal Year 2027 Parks and Recreation Fund as follows:

AUTHORIZED EXPENSES
Beach Operations 1,462,655
Lifeguards 681,725
Harbor Master 44,098
Security 145,943
Parks & Grounds 241,894
Campground 72,515
Non-Department Specific 743,308
Capital Improvement Program 226,385,1,007,113

Total Parks and Recreation Fund Expenses 3,617,529.90 4,399,231

ANTICIPATED REVENUES
Investment Income 12,000
Other Revenue from Local Sources 10,050
User & Program Fees - Beach 2,562,573
User & Program Fees - Campground 297,900
Restricted Income - Other 450,000
Use of Fund Balance 286,385,1,007,113

Total Parks and Recreation Fund Revenues 3,617,529.90 4,399,

Fiscal Year 2027 Operating Budget Ordinance

Restricted Income-Grants 44,500
Use of Fund Balance 754,477

Total Sewer Fund Revenues 8,648,965

Section 3A. Sewer Maintenance/Newport Customer Service charges:
1. Collect a Sewer Rate of $21.44 per 1,000 gallons for all connected sewer users.
2. Collect a Newport Customer Service Charge of $47.90 per meter from all connected sewer users.

Section 4. Refuse and Recycling Fund: Approve the Fiscal Year 2027 Refuse and Recycling Fund Budget as follows:

AUTHORIZED EXPENSES
Refuse & Recycling Operations 321,008
Pay-As-You-Throw (PAYT) 1,147,447
Non-Department Specific 5,456

Total Refuse & Recycling Fund Expenses 1,473,911

ANTICIPATED REVENUES
Investment Income 18,600
Other Revenue from Local Sources 8,760
Permits 904,735
User & Program Fees 478,550
Budgeted Use of Fund Balance 63,266

Total Refuse & Recycling Fund Revenues 1,473,911

Section 4A. Pay As You Throw (PAYT) Annual Permit Fee/Bag fees:
1. Maintain the PAYT bag rate of $1.75 for the 15 gallon trash bag and $2.00 for the 33 gallon trash bag
2. Increase the Annual Permit Fee to $190.00 for all PAYT program participants
3. An additional annual permit fee of $25.00 shall be charged for each refuse barrel in excess of one per property

Fiscal Year 2027 Operating Budget Ordinance

1Amended by Council, May 27,2026
2Amended by Council, May 27,2026
3Amended by Council, May 27,2026
4Amended by Council, May 27,2026
5Amended by Council, May 27,2026
6Amended by Council, May 27,2026

May 27,2026
READ AND ADOPTED IN COUNCIL, AS AMENDED

Wendy J.W. Marshall
MMC
Town Clerk

Fiscal Year 2027 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, 2026, and ending June 30, 2027.

Section 1. General Fund
A. Use of Unrestricted Fund Balance
B. Capital Improvement Program
C. Appropriation to School Department
D. General Fund Civic Appropriation
E. Police Department organization
F. Fire Department organization
G. Full funding of Pension and OPEB
H. Atlantic Beach District TIF Report
I. American Rescue Plan Act Spending Plan

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 2027 General Fund Budget as follows:

AUTHORIZED EXPENDITURES
Town Administrator $ 750,901
Finance/HR 1,433,028
Tax Assessment / Collections 338,891
Town Clerk 559,208
Information Technology 1,112,306
Support Services 543,242
Town Council 77,386
Town Solicitor 232,885
Boards & Committees 151,096
Building 518,876
Planning 341,531
Police 8,681,703
Fire 6,463,175
Public Works 4,165,963
Library 1,393,424
Senior Center 465,817
Middletown Prevention Coalition 35,535
Community Outreach 46

Fiscal Year 2027 Operating Budget Ordinance

AUTHORIZED EXPENDITURES (cont’d)

Community Services Grants 327,100

Debt Service 13,431,337
Non-Department Specific 7,188,279
Capital Improvements
Information Technologies 265,000
Support Services 185,651
Police 225,293
Fire 175,000
Public Works 1,222,000
Library 103,105

Education 47,975,126

Total General Fund Expenditures 99,538,972

ANTICIPATED REVENUES

Taxes Levied by Municipality 60,819,927
Penalties 120,000
Investment Income 380,500
Other Revenue from Local Sources 137,950
Restricted Grants-in-Aid State Sources 629,222
Restricted Grants-in-Aid Federal Govt. 886,631
Funds Transfer In 6,723,023
Proceeds from Disposal of Real/Personal Property 1,000
Proceeds from Capital Leases 1,222,000
Revenue from Claims & Settlements 62,035
Licenses 152,900
Permits 1,234,790
Fines & Other Fees 836,600
User & Program Fees 1,495,944
Intra Governmental Support 6,444,966
Revenues – Other 35,768
School Department Revenue 13,358,976
School Department CIP Appropriation 395,476
Town Use of Fund Balance 4,601,264

Total General Fund Revenues 99,538,972

Section 1A. Use of Unrestricted

Fiscal Year 2027 Operating Budget Ordinance

Section 1B. Capital Improvement Program

To approve the FY2027 through 2031 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 $3,284,910; and for only fiscal year 2027 the proposed percentage increase shall not be reflected in the increased annual appropriation.

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 $2,889,522
b. Support Services 241,000
c. Public Works 185,651
d. Library 1,550,000
e. Senior Center 50,000
f. Debt Service Payments 781,871

2. School Department $515,476

Section 1C. Appropriation to School Department:

Unrestricted Appropriation: Amount
Fiscal Year 2026 Amount 32,904,494
4% Increase 1,316,180
Total Unrestricted Appropriation FY27 34,220,674

Other Appropriations:
Deficit Reduction Plan-Local Portion 900,000
Deficit Reduction Plan-ARPA Portion —
Total Other Appropriations: 900,000

Total FY27 Town Appropriation 35,120,674

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 2026-2027 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 1D. General Fund Civic Appropriations: Approve Civic App

Fiscal Year 2027 Operating Budget Ordinance

Section 1E. Police Department organization: In accordance with the Town Council’s authority under Town Charter §701, and to remain within the parameters of the approved FY2027 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, 26 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; 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	1	4
Detective		5
Patrol	3		23
Civilian	4 (3 FT, 1 PT)	1			1 (PT)

Section 1F. Fire Department organization: In accordance with the Town Council’s authority under Town Charter §702, and to remain within the parameters of the approved FY2027 budget appropriation, the Fire Department shall be comprised of up to, but no more than, 43 employees, to include:
1 Fire Chief; up to, but no more than, 4 Battalion Chief

Fiscal Year 2027 Operating Budget Ordinance

Section 1H. Atlantic Beach District Tax Increment Financing Annual Reporting (cont'd):
Total increase/(decrease) property values compared to base year: $86,279,600
Tax revenues generated from proposed tax rate from increase/(decrease) in property values from base year: $641,260
Amount set aside for use in proposed budget for use in the Atlantic Beach District: $0

Section 1I. American Rescue Plan Act (ARPA) Fiscal Year (FY) 2027 Spending Plan (ARPA Dollars OnV):
Department of Community Outreach FY 2027 Allocation to be spent prior to December 31, 2026: $30,000

Section 2. Parks and Recreation Fund: Approve the Fiscal Year 2027 Parks and Recreation Fund as follows:
AUTHORIZED EXPENSES
Beach Operations $ 1,462,655
Lifeguards 681,725
Harbor Master 44,098
Security 145,943
Parks & Grounds 241,894
Campground 72,515
Non-Department Specific 743,308
Capital Improvement Program 225,385
Total Parks and Recreation Fund Expenses $ 3,617,523

ANTICIPATED REVENUES
Investment Income $ 12,000
Other Revenue from Local Sources 10,050
User & Program Fees - Beach 2,562,573
User & Program Fees - Campground 297,900
Restricted Income - Other 450,000
Use of Fund Balance 285,000
Total Parks and Recreation Fund Revenues $ 3,617,523

Section 2A. Holiday Parking Rate at Sachuest Beach:
The Town shall charge the Holiday Parking Rate on Memorial Day (May 25th), Junete

Fiscal Year 2027 Operating Budget Ordinance

ANTICIPATED REVENUES (cont'd)
Restricted Income-Grants 44,500
Use of Fund Balance 754,477

Total Sewer Fund Revenues $ 8,648,965

Section 3A. Sewer Maintenance/Newport Customer Service charges:
1. Collect a Sewer Rate of $21.44 per 1,000 gallons for all connected sewer users.
2. Collect a Newport Customer Service Charge of $47.90 per meter from all connected sewer users.

Section 4. Refuse and Recycling Fund: Approve the Fiscal Year 2027 Refuse and Recycling Fund Budget as follows:

AUTHORIZED EXPENSES
Refuse & Recycling Operations $ 321,008
Pay-As-You-Throw (PAYT) 1,147,447
Non-Department Specific 5,456

Total Refuse & Recycling Fund Expenses $ 1,473,911

ANTICIPATED REVENUES
Investment Income $ 18,600
Other Revenue from Local Sources 8,760
Permits 904,735
User & Program Fees 478,550
Budgeted Use of Fund Balance 63,266

Total Refuse & Recycling Fund Revenues $ 1,473,911

Section 4A. Pay As You Throw (PAYT) Annual Permit Fee/Bag fees:
1. Maintain the PAYT bag rate of $1.75 for the 15 gallon trash bag and $2.00 for the 33 gallon trash bag
2. Increase the Annual Permit Fee to $190.00 for all PAYT program participants
3. An additional annual permit fee of $25.00 shall be charged for each refuse barrel in excess of one per property