Middletown expected to exceed two percent tax cap in new year

MIDDLETOWN – A number of factors will likely be the cause for the City of Middletown to exceed the state-mandated two percent tax cap in 2027, the first time in 15 years. Mayor Joseph DeStefano saID issues include federal tariffs, the price of gas and diesel fuel, rising health insurance premiums, salaries and pension costs – fringe benefits for current employees and retirees will cost $1.3 million – Medicaid fees, and ambulance service costs, among other essential expenses. DeStefano said the city’s Board of Estimate cannot cut any more without reducing services, but he said residents are welcome to make suggestions. “If you propose reductions, please explain which services, which positions, which programs they would affect. I think the residents deserve a clear discussion on this matter, not only from my point of view, but from those who want to reduce that tax levy from $507,000 down to zero,” he said. “Our record demonstrates that we can manage city finances, reduce it very careful