Tonight’s Middletown Board of Education meeting that will take place at High School North @ 7pm will be interesting for a few of reasons that you will and won’t hear about.
Category Archives: cap wavier
Last night Middletown re-introduced the FY 2009 budget and to summed up in very plain and simple language, it is a MESS !!
Contrary to previous reports Bob Roth really did not find any hidden monies, when he presented the budget to the local finance board in Trenton, the state told Middletown that they could reduce the amount of reserve for unpaid taxes to the state mandated minimum which saved the township $1.2M.
Next week there will be another ordinance to be voted on by the township committee that will take another reserve fund, that has been laying around since 2006, and put it into the budget for another $399k 1 shot revenue gimmick .
The “tireless ” hunting for savings that the Majority search for resulted in a few minor reductions and few increases in line items throughout.
I have to hand it to Bob Roth, after over 20 years of being CFO, he really knows his stuff. the man had explanations for everything that was brought up, but overall there were no real cost savings in this budget, just the 1 shot use of surpluses that were moved into the budget.
The bottom line is this, even after the use of the surpluses it did not save the township from a significant tax increase of 5.8%. And by deferring payment of half of Middletown’s pension obligations of $600K, which was a requirement by the state to qualify for the cap wavier, it will cost Middletown an additional 4% interest over the next 12 years on that deferral.