News Flash

COUNCIL APPROVES $94 MILLION BUDGET FOR FISCAL 2026

MIDDLETOWN, RI (MAY 28, 2025) – At the first public hearing last week, Town Council members agreed there was work to do on the Fiscal 2026 budget.

They delivered on that promise Wednesday night, clearing up some outstanding issues before adopting the new $94 million budget for the upcoming fiscal year, which begins July 1. 

The net result of the last minute moves by the council during the second public hearing in Town Hall were additional savings for taxpayers of 4 to 5 cents cut from the original proposed tax rate in each of the community’s three tax classes.

Although the numbers haven’t been finalized yet, the projected tax rate for residential taxpayers is expected to be $9.08 per $1,000 of assessed value for Fiscal 2026. Nonresident property owners are projected to pay $11.81 per $1,000 and $13.61 per $1,000 for commercial.

Thanking everyone for their work, town and school officials said they were pleased with the overall budget, noting it addressed a steep loss in state educational aid, smoothed out future debt payments and marked the final year of the School Deficit Reduction Plan while continuing to move Middletown in a positive direction without breaking the bank.

The median residential property owner was expected to pay about $266 more in taxes in Fiscal 2026, $368 for median nonresident property owners and $552 for median commercial property owners.

“I think we do a pretty good job managing money,” council President Paul M. Rodrigues said. “The town’s in a pretty darn good position and when you add it all up and look at the big picture of things, our rating is good and everything else is good.”

Town officials said Middletown would not need to ask permission from the state for approval of the new tax rate. That’s because the 4.85 percent increase is on the tax rate, not the tax levy. In Rhode Island, communities looking to go over the state’s 4 percent tax levy cap must get the okay from the Division of Municipal Finance.

They noted the 4.85 percent tax rate had to be applied equally to each of Middletown’s three tax classes — resident, nonresident and commercial. The only time the town can make the rates higher for one tax class than another was during a property revaluation year, like in Fiscal 2025.

They also said the Fiscal 2026 budget included all payments and related expenses from  the new school, library and other debt. That means no extra payments or increases to the tax rate would be necessary in Fiscal 2026 from those projects.

The council approved a sewer rate of $19.39 per 1,000 gallons, or $1.34 more than the current rate. Town numbers showed the sewer bill should increase for the average user by about $84 a year, or to around $890.

The town’s “Pay-As-You-Throw” trash and recycling fee for the mandatory bags would remain the same in the Fiscal 2026 budget. However, the yearly cost of the curbside trash and recycling program will go up $5 to $185 to offset rising costs and build a fund balance in the program. Visit https://mdl.town/PAYT for more.

Seasonal and daily parking at the beaches will stay at the current rates for Summer 2025. For more about the beach season, visit https://mdl.town/BeachBasics online.

On Wednesday night, the council approved several amendments to the Fiscal 2026 budget that used existing revenues and funding that would not add to the base budget.

Among those included taking about $115,000 in contingency money to bring in another full-time librarian and two part-time circulation assistants to the Middletown Public Library. Council members and others have questioned whether the library had sufficient staffing for its new location at 110 Enterprise Center behind Town Hall. 

Another was enlisting approximately $307,000 in fund balance money to help smooth out the debt service payments so there are no big peaks and valleys for the new middle-high school and related work.

The council also allocated close to $10,000 in General Fund and Parks & Recreational Fund money to pay for all the civic appropriations requests recommended by the town’s Outreach Committee. Town officials said it was important to provide full support for local organizations that fill community needs and help local residents and businesses.

Given the ongoing dialogue about mental health in Middletown, Finance Director Marc Tanguay noted there were an array of services and supports provided by the town and community service providers.

Among those included through the local schools, emergency service providers and the Middletown Outreach Department. Then, there’s funding to groups like Child & Family Services of Rhode Island, East Bay Community Action Program, Lucy’s Hearth, Newport Mental Health, the Women’s Resource Center and others.

To view the computer slideshow presentation from Wednesday’s second public hearing, visit https://www.middletownri.gov/DocumentCenter/View/19332/Second-Public-Hearing-FY-26-52825-Final online.

Within a month or two of the council adopting the current numbers last summer, work began on the preliminary Fiscal 2026 budget.

Out of the gates, local leaders forecasted a tough budget season, noting a projected $661,000 loss in state aid and uncertainty on the national stage would add complications.

Hearing that message, the schools presented in March a 4 percent budget increase for education, which covered the $661,000 loss in state aid without major cuts or reductions in  spending on education.

School leaders said this was done by not filling vacant positions opened by retirements and making other strategic personnel decisions. They said this was also accomplished by not impacting teaching and learning in classrooms across the district.

In April, council members went through the budget, closely reviewing the numbers and asking a myriad of questions of each department head, finance staff and the town administration.

Out of that session, more than 70 recommendations emerged, with town and school leaders tasked to find solutions without adding more to the bottom line.

In addition to the $661,000 loss in state aid, local leaders said a significant part of the $1 million increase for Fiscal 2026 was the move of more properties from the nonresident tax rate to the resident rate in the town’s Tiered Residential Tax Program (TRTP). 

Figures from the town showed there were 3,463 total households taking part in the TRTP for Fiscal 2026. That includes 3,385 for their primary residence and 78 landlords. In the current budget, there were 3,011 participants.

The TRTP was approved by the council in late 2021 to make Middletown more affordable for residents. Since then, thousands of homeowners have capitalized taken advantage, including saving about 30 percent on their current tax bills.

Another reason for the $1 million increase was addressing the final year of the four-year School Deficit Reduction Plan, town officials said. 

The council approved an aggressive plan to correct issues with the School Department’s budget in 2022 to balance the financial books. Under the reduction plan, a mix of federal American Rescue Plan Act money and local tax dollars were used to cover those gaps. Other changes — like combining town and school financial offices — were adopted to make sure  those issues never happened again.

For more about the new budget, visit https://mdl.town/FY26-Budget online.

“We are trying to hold the line,” Town Administrator Shawn J. Brown said. “I think the story we’re is we sort of came out of a hole and Middletown is really firing on all cylinders right now. As (Superintendent) Billy (Niemeyer) said, every tax dollar is sacred and that represents what we’re trying to do.”

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About Middletown

The Town of Middletown is a vibrant municipality located on Aquidneck Island, known for its scenic beauty, historic landmarks, diverse economy and strong sense of community. For more information about all we have to offer, visit MiddletownRI.gov online.

Media Contact

Matt Sheley

Public Affairs Officer

401-842-6543

msheley@middletownri.gov